The Private Finance Initiative (PFI) is increasingly important in the provision of public sector facilities, and is seen by the Government as a major vehicle for modernising public service delivery. To date, only a small number of new PFI schools have been completed. But commitments have been made to build many more - in the future, PFI will become the day-to-day reality for successive generations of pupils over the 25-to 30-year period of the contracts. It is crucial that these schools get the most from PFI, and that early lessons are recycled effectively during future investment. Much has already been written about the PFI procurement process, accounting treatments and costing mechanisms, but little about what PFI is actually delivering. In the context of an often polarised and emotive public debate, this report helps to shift the focus onto consideration of PFI outcomes.
Enough PFI schools are now open to review what the initiative is delivering and to put evidence in the public domain to inform its future. Even though some of these schools were initiated in the early days of PFI, and policy and practice are continually developing, it is timely to capture the learning for the benefit of future schools and their users.
The findings of the study will be of interest to:
• Schools: for headteachers, governors and those involved in facilities management there are messages about ensuring that the design of their new school meets their needs flexibly over the long term, and how best to manage relationships with their private sector partners.
• Local education authorities (LEAs): the report describes the LEA's pivotal role in all aspects of the PFI process, and how the LEA can facilitate improvements.
• The private sector: the report will help providers to become familiar with what schools require and what design experts and users think of their buildings and services.
• The Government: the report reviews how well PFI is delivering in its early days, and many of the recommendations for how to improve are directed at government level.
In addition to this report, the study's findings are summarised in a summary and briefing paper, while more detail about the methods and findings are presented on the Audit Commission's website (www.audit-commission.gov.uk). Appendix 1 lists the organisations commissioned to carry out elements of the research. A wide range of people provided helpful comments on drafts of the report. The Audit Commission is grateful to them all, and to the local authorities and schools that directly contributed as fieldwork sites. As always, however, responsibility for the contents and conclusions rests solely with the Audit Commission.