65 PFI needs to be given an opportunity to prove itself properly against other procurement routes and to come of age. PFI promotes contestability and competition in the provision of public services, but that principle should be extended so that it is allowed to compete against other procurement tools - this is a more complete test of VFM than the theoretical calculation of the PSC. Other areas of government policy increasingly recognise that it is not possible to deliver strong public services that meet public expectations using a top-down, 'one-size-fits-all' solution, but that delivery needs to be via local choice and flexibility (for example, Ref. 14).
66 Although all procurement options are technically open to LEAs, the practical barrier is the lack of an even financial playing field. It is time to review this lack of parity, particularly in light of the imminent introduction of prudential borrowing guidelines for local authorities and the concerted efforts being made to introduce new forms of PPP. It also fits well with the further development of Asset Management Plans, which the DfES wishes to see become more strategic statements that join up funding schemes (Ref. 15). A more multi-choice procurement regime might also encourage new private sector companies to enter, which will be good for competition and help develop a stronger, more diverse base of expertise in a fundamental public service. The options might include private sector provision of the building fabric (including its maintenance) but leaving the traditional 'soft' facilities management with the LEA/schools, or planning for more flexible use of buildings across services and departments. Opening up the options would, of course, need to be within a framework that is consistent with government capital spending controls. The framework would also require internal and external checks and balances. It is important to retain the rigour that processes such as PFI bring to procurement through a high level of external scrutiny and challenge.
67 Long-term contracts in core services, such as schools, where policy is changing rapidly, demand flexibility. That is not easy with buildings, however they are funded. One development, therefore, might be managing an estate across different services within a locality by designing more multi-purpose buildings. The 2004/05 DfES bidding guidance places increasing emphasis on how a project could link to the wider government agenda, for example, to tackle a range of educational, regeneration, leisure, health, social inclusion, lifelong learning and community safety objectives. That requires incentives for the private sector to deliver imaginative designs, and a willingness on the part of national and local government to break down service silos and fund fully more innovative schemes. Of course, such schemes could be more complex than a standard school PFI scheme, and the relationship difficulties greater, given the increased number of agencies that would be involved in the partnership.