Figures hidden away in the government’s pre-budget report last week show that the price we are paying for privatisation is spiralling out of control.
The cost of existing Private Finance Initiative (PFI) schemes – the main method with which the government builds schools, hospitals and other big infrastructure – has grown by £27 billion since the spring.
Forecasted payments between now and 2032 stand at £216.1 billion, compared with the £188.6 billion claimed earlier.
Other figures show that the cumulative 25-year bill for PFIs has gone up by an astounding 74 percent since 2004.
Most of the money invested in PFI schemes comes from banks – in particular RBS, which the state now owns.
That means the public are now funding privatisation from both ends – paying increased costs for PFI projects on the one hand, while spending billions bailing out banks on the other.
The only winners are the companies that are making a killing out of privatisation.