1. SFT is at an early stage of discussions with public sector bodies to explore the areas mentioned above. Some areas of potential saving are being identified, but as significant analysis and eventually contract renegotiation would be required to deliver them, it is too early to say whether the level of savings will be significant.
2. A decision from SG is needed on whether to pursue VfM and cash savings through termination which would bring assets back on balance sheet for the public sector.
3. We recommend that in order to maximise incentives, SFT continue to work largely on the premise that savings that are realised will be retained by the local public sector body implementing the change.
4. We recommend that the extension of the term of projects and / or the back ending of debt is rejected as a means of realising short term savings in unitary charge, unless an overall value for money improvement in NPV terms can be demonstrated.