The Labour government committed an extra 拢1bn to PFI schemes last year as it attempted to kickstart the private financing of infrastructure projects, auditors have found

The National Audit Office said the Treasury Infrastructure Finance Unit, set up last year in response to a collapse in PFI funding, reactivated the lender market for PFI and was value for money 鈥渋n the short term鈥�.

However, the auditor found that by giving priority to closing deals at the prevailing market rates, the unit may have committed the public sector to extra costs of between 拢500m and 拢1bn. Thirty-five deals were signed after the unit was set up.

MP Margaret Hodge, chairwoman of the Committee of Public Accounts, said: 鈥淲e are locked into these costs for generations to come.鈥�

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