With billions set to be spent on Private Finance Initiative (PFI) contracts before major expirations in 2030, how can schools prepare for a smooth transition while safeguarding budgets and services?
The UK is projected to spend over £9bn this year on PFI contracts and a total of £48bn in the next five years. This level of spending will continue until the first peak in contract expirations around 2030, when assets worth £14bn (based on their original capital value) will transfer back to public ownership.
However, a recent BBC investigation has uncovered growing concerns over the expiry of PFI contracts, particularly for schools and hospitals. Schools tied into long-term agreements have struggled to get essential repairs done while paying “astronomical” costs over the past 25 years. With contracts set to expire, many fear that private firms will walk away, leaving a backlog of repairs and a hefty bill for the public sector.
Click here to read more on our insight into navigating the challenges and opportunities of PFI contracts.
