Labour Party policy on PFI

The Labour Government remains firmly committed to using PFI.

In the Budget published on 22 April 2009, the Government states that it "remains strongly supportive of the value that private finance can bring to infrastructure procurement." Click here for a copy of the Budget document. The Government also shows there is a healthy pipeline of PFI deals, forecasting £11.7 billion of projects currently in procurement to reach preferred bidder by 2011. This information is included in the Budget supplementary material document; click here for a copy of the relevant pages.

On 3 March 2009, Yvette Cooper MP, when she was Chief Secretary to the Treasury, re-affirmed the Government's commitment to PFI when she announced the establishment of what has become the Treasury Infrastructure Finance Unit (TIFU). This entity provides support for PFI projects in procurement which, as a result of the credit crunch, are experiencing difficulties due to a lack of debt financing. In total PFI projects with a combined capital value of £13 billion will be safeguarded. She went on to say "These projects can therefore go ahead swiftly and support jobs and the economy and help prepare the country for the future recovery. ...PFI projects have consistently demonstrated value for money and high levels of user satisfaction in vital areas of public service delivery". Click here for a full copy of the statement.

In February 2004 Gordon Brown MP, when he was Chancellor stated "In my view the Private Finance Initiative is in the public interest. It must be right that government seeks to secure, over the long term, the most cost effective infrastructure for our public services. PFI enables us do this by binding in the private sector into open and accountable long term relationships with the public sector aimed at securing a proper sharing of risk and access to private service managerial expertise and innovative ideas to secure better public services."

Contact details:

For further information on Labour Party Policy please contact the Labour Party on 020 7802 1000 for general inquiries or for media inquiries please contact the Labour Party's Press Office on 020 7802 1393.

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