The 2007 budget has legislated for £10.8bn future dealflow of PFI credits from 2008 to 2011, which demonstrates a commitment to the development of the PFI martketplace. HM Treasury have also announced plans to adopt IFRS for 2008/9. It remains to be seen what impact this change will have on the overall PFI pipeline.
Superficially, this looks like a decreased level of spending compared to £6bn in 2006. But if it relates only to the capital element of PFI spend, it looks more healthy.