To ask Mr Chancellor of the Exchequer, how his Department monitors private finance initiative contracts, including (a) strategic risk management policy, (b) financial control and (c) performance management.
The vast majority of PFI projects were signed under the last Labour government – 620, or 86% of all PFI projects in the UK. Since coming to office in 2010, this Government has reformed the approach so that now, PF2 contracts deliver better value for money for the taxpayer.
We have also improved the VfM we get from existing PFI contracts, and this will deliver over £2 billion in efficiencies over the remaining life of the contracts.
The performance of PFI and PF2 contracts is monitored by the procuring authority. The government has published a range of advice on managing PFI and PF2 contracts, covering areas such as operational savings, refinancing and termination. HM Treasury assesses and responds to fiscal and financial risks as part of its ongoing business activities.