3.30 We expect that whilst nearly all PFI projects will be recorded on the balance sheets of their public client's accounts, the majority will not be included in statistics of Public Sector Net Debt. This removes the incentive to shape projects against the detailed financial reporting standards to ensure that they are off-balance sheet in the accounts.
3.31 There remains an incentive, however, to use private finance over other procurement options, to keep liabilities out of departmental capital budgets and excluded from Public Sector Net Debt. Furthermore, the decision as to which private finance projects require cover in capital budgets will no longer be subject to independent scrutiny by auditors.