It goes without saying that it is important that budget and resources are made available at the outset of the expiry process. The budget and resources are additional to those resources currently managing the contracts.24
This may prove to be particularly difficult in the Covid era, but failure to do so will be fatal to a successful expiry program, not just in ensuring value-for-money from the PFIs, but in ensuring seamless continuity of services for users and in optimising the future use of the assets.
The NAO has previously noted that public sector budget pressures have resulted in significant reductions in maintenance spending on non-PFI assets. For example, it noted that between 2014-2016, while health trusts reported an increase in the critical infrastructure maintenance backlog of more than 50% to £2.3 billion, HM Treasury allowed the NHS to move more than £1 billion of funding allocated for capital investment to pay for day-to-day spending. 25
In this context, it is of concern as to whether sufficient funds and resources will be made available for a successful expiry programme.
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24 NAO Report 'Managing PFI assets and services as contracts end' (29 May 2020), Key Finding 12