Private Finance Initiative

Health written question – answered on 11th July 2012.

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Photo of Chris Skidmore Chris Skidmore Conservative, Kingswood

To ask the Secretary of State for Health

(1) what the total value is of PFI schemes signed between 1997 and 2010; and what estimate he has made of the amount it will cost the NHS to pay back these schemes;

(2) if he will place in the Library a copy of the total number of individual PFI schemes signed between 1999 and May 2010, the value of each individual scheme and the total estimated cost to pay back each scheme.

Photo of Simon Burns Simon Burns The Minister of State, Department of Health

Information on the estimated annual revenue payments for the lifetime of each national health service private finance initiative (PFI) contract signed between 1997 and May 2010 can be found on the Treasury's website at:

www.hm-treasury.gov.uk/d/pfi_current_projects_list_march_2012.xls

These are the latest estimates collected from each Department for end of March 2012; the health sector schemes are clearly marked "Department of Health" and then "DH-Acute (i.e. Hospitals)". The initial capital cost of each scheme is shown in column R and the annual revenue payment in the columns headed ‘Unitary Charge Payment’.

The Treasury table shows that the total initial capital expenditure of the 102 NHS schemes that have been signed is £11.4 billion and the estimated total revenue payments is £76.2 billion. The revenue payment figures include not just the financing costs for initial construction but also the costs of all the other services such as building maintenance and support services (cleaning, catering, portering etc.) provided over the lifetime of the contract. The payments are subject to meeting agreed performance and quality standards and include an annual uprate assumption for inflation of 2.5%.

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