Thank you to those constituents who have contacted me about Private Finance Initiatives (PFIs) and/or Public Private Partnerships in the NHS.
I note your concerns about the Government’s proposals for public private partnerships to develop and establish Neighbourhood Health Centres and I can assure you that, ahead of the Autumn Budget 2025, my colleagues in the Shadow Health ministerial team will be pressing Ministers about the details of the private finance model that will be used to develop Neighbourhood Health Centres. We must avoid the mistakes made under the last Labour Government around PFI-funded projects, which still cost the NHS significant amounts of money every year in debt.
It is vital this current Labour Government continues to repair the damage done by PFI deals in the NHS, which are widely seen as disastrous. Introduced under the last Labour Government in 1997, PFI debt costs the NHS significant amounts of money every year and has restricted a number of hospitals ever since.
As part of the October 2018 Budget, the then Chancellor announced that no new contracts would be signed, with a new centre for best practice established within the Department of Health and Social Care to ensure that the remaining contracts are properly managed. The last Conservative Government honoured existing PFI contracts - with some having early termination clauses in place that would cost more to invoke than the life of the contract.
PFIs have, rightly, been heavily criticised for failing to deliver value for money, and I am glad that a line has been drawn under the appalling deals negotiated in the past.
Under Conservative-led Governments, NHS investment increased every year from 2010 to 2024 and progress was made towards building new hospitals in areas affected by RAAC, as well as refurbishing several other hospital sites. I will continue to hold Government Ministers to account for rectifying the financial cost of the PFI deals signed under previous administrations.
I have written to the Department of Health and Social Care on behalf of my constituents to ask for more details and will update this statement as and when I receive a response.
