1 The Private Finance Initiative (PFI) is a form of public-private partnership (PPPI) that has become a key element of the Government's strategy for improving and modernising public services, after an extended period of falling investment. PFI schemes differ in their details, but typically involve investment by a private consortium - the 'PFI provider' - in new, rebuilt or refurbished buildings, such as schools. The PFI provider takes responsibility not only for providing the premises but also for maintaining the buildings and, in many instances, for some or all of the facilities management (FM) services, such as caretaking and cleaning.II Local authorities pay a monthly charge to use the serviced buildings, providing that the standards built in to the contract are met. At the end of the contractual period, the responsibility for the buildings will typically revert back to local authority control.
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I Appendix 2 provides a glossary of terms.
II The private sector does not take responsibility for providing the education itself - teachers still work for the LEA in exactly the same way as those in traditionally procured schools.