PFI May Push Excess Burden on Taxpayers

public-finance-initiativesIn a recent report, it has been revealed that ascending Britain’s public finance initiatives (PFIs) is likely t put an extra burden on taxpayers. It has been known that the Public finance initiatives have been backed by Blair and Brown administration too and perhaps that’s what made them all the more popular in the long run.

It is know that through PFI, private companies get the chance of financing, construction and operating public sector projects, and later on, they lease the projects to public authorities for a long time.

As of now, there are 717 PFI contracts underway in Britain with a worth of £54.7bn and there are chances of the worth to touch the mark of £301bn by 2017-2018. “We’re sitting on a PFI debt time bomb, and the sheer scale of the burden paints a seriously grim picture for the future of our public services”, said Unison general secretary Dave Prentis.

It is believed that three South London hospitals failed last week to make their repayments, thereby making it all the more clear that this situation is not that fine. In addition, the South London Healthcare Trust, which runs three hospitals in New Cross; Barking; Havering and Redbridge, also came under the scanner.