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NHS has not reaped fair benefits from refinancing of PFI schemes, MPs say

BMJ 2007; 334 doi: http://dx.doi.org/10.1136/bmj.39217.383148.DB (Published 17 May 2007) Cite this as: BMJ 2007;334:1021
  1. Michael Day
  1. London

    An influential group of MPs has claimed that widespread financial incompetence is adding to the cost of the United Kingdom's controversial private finance initiative (PFI).

    The House of Commons Committee of Public Accounts made its new attack on the PFI after it discovered that the government had clawed back £100m (€145m; $200m) less than was predicted from the new private-public profit sharing schemes.

    The committee's chairman, the Conservative MP Edward Leigh, blamed the loss on the failure of Treasury officials to oversee key refinancing arrangements.

    In 2002 ministers introduced changes so that public sector bodies could share in some of the financial gains when big PFI loans were rearranged.

    Typically, these loans …

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