26. PFI has an impact on the functioning of hospitals and schools. There are examples of poor quality services; cuts to services and jobs; and hospital wards and schools closing. Many of the early PFI schools were blighted with design problems and are of poorer quality compared to traditionally procured buildings.44 But the situation has not fared better for newly built schools procured under the Building Schools for the Future Programme (BSF), which is partly funded by private finance. Recent evidence suggests that PFI schools continue to suffer from a catalogue of problems, including chronic overheating, leaking roofs and inadequate facilities. In 2007 the Association of School College Leaders (ASCL) published a critical report on PFI schools which highlighted design and contractual problems, estimated to cost the taxpayer billions of pounds. Head teachers have complained that PFI contractors provide a poor service and put up their fees, and have expressed concerns that time that should be spent on education is being wasted on resolving contractual problems.
27. In August 2009 the Commission for Architecture and Built Environment revealed that more than 104 Building Schools for the Future schemes were rated "not good enough", "mediocre" or "poor". And more recently data obtained by the PPP Bulletin45 under the Freedom of Information Act shows that the costs for the scheme have grown. For example, 31councils have seen the expected costs for their schools rise from an initial £122 million to £161 million.
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44 Audit Scotland June 2002, Taking the initiative-Using PFI contracts to renew council schools.
45 PPP Bulletin, 11 September 2009, Costs Building Up.