This memorandum sets out the way ONS handles Private Finance Initiative (PFI) projects in respect of the National Accounts and public finance statistics. It relates primarily to the issues raised in Question 6 of the inquiry:
- "How should future payments by the Government under existing Private Finance contracts be recorded in public sector accounts?
- Is risk transfer an appropriate test? Should all such liabilities be included in the national debt? Should they be accounted for separately from government debt? How much does the public sector accounting treatment of capital and revenue aspects of projects matter?"