Economic concerns about increased public debt and dubious accounting methods, have been used to conceal the real cost of PFI/PPP projects. However, long-term contractual commitments are a form of public debt, but these large financial liabilities have been lodged in public sector revenue accounts. This means the quality of frontline services and the interests service users and staff are sacrificed in order to repay exorbitant private debt.
The high cost and poor track record is evidenced in the level of buyouts, bailouts, terminations and major problem contracts. There is a growing realisation that long-term private finance contracts are inflexible, inhibit change in response to social and economic needs and restrict innovation in service delivery. The financial commodification of public infrastructure has created a new wealth machine to enable private investors, banks and construction companies to obtain very high returns at the expense of public economic and social needs. The PFI/PPP model is unsustainable and must be terminated.