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The NHS is on the verge of a change that could have profound implications in the longer term. That change goes under the name of the private finance initiative. Its ostensible purpose is to attract private finance to enable NHS trusts to undertake capital projects that might otherwise not be funded. The risk is that in the wrong hands the private finance initiative could make a reality of claims that the provision of NHS services is being privatised.
The private finance initiative affects all parts of the public sector and was launched by the chancellor of the exchequer in 1992. Its aim is to reduce public spending on capital projects by providing incentives for private finance to fund schemes in energy, transport, health, and other sectors. To date the initiative has had only a marginal impact on the NHS, but under arrangements currently
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