The Government has already taken a number of steps to address the concerns with PFI and to respond to the recent changes in the economic landscape. These include:
• publishing the Whole of Government Accounts, in order to improve the transparency of PFI liabilities;
• launching the Operational PFI Savings Programme in order to improve the cost effectiveness, value for money and transparency of operational PFI projects. The Government has already met its target making over £1.5billion of efficiencies and savings from operational PFI contracts in England and is currently progressing almost another £1billion;
• abolishing PFI credits at the Spending Review 2010 in order to create a level playing field for all forms of public procurement; and
• introducing new arrangements for the assurance and approval of major projects to strengthen scrutiny and control.
In response to constrained debt markets, the Government has also announced a number of initiatives to support and accelerate infrastructure delivery. These include UK Guarantees, co-lending for PFI projects, housing guarantees, increased capital contributions, setting up the Green Investment Bank and signing a number of memoranda of understanding with institutional investors, pension funds and export credit providers.
The Government does, however, recognise the need to go further to address value for money concerns. It has, therefore, undertaken a call for evidence on the reform of PFI in order to develop a new approach that draws on industry skill and expertise in a way that offers better value for government's investment in public infrastructure and services.