Socialist Worker

PFI con keeps costing us more

Issue No. 2130

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.

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Tue 2 Dec 2008, 18:43 GMT
Issue No. 2130
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