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Local government

Public Private Partnerships and Private Finance Initiative

Private Finance Initiative (PFI) contracts are a form of public-private partnership (PPP). Other forms of PPP include:

  • Strategic Service Delivery Partnerships (SSDPs)
  • Concessions (eg toll roads)
  • Strategic Infrastructure Partnerships, such as the NHS Local Improvement Finance Trust (LIFT) programme in the health sector, and Local Education Partnerships (LEPs) in the Building Schools for the Future programme

Some PPPs may involve setting up Joint Venture Companies.

PFI contracts allow local authorities to gain access to new or improved capital assets (most commonly, but not always buildings). The public sector may or may not own the assets, but in either case will pays for its provision and use, together with associated services (for example, maintenance, management, security, cleaning, etc). Capital investment in the assets is made by the private sector which recovers its costs over a long contract period (often 25 years or more).

Communities and Local Government supports projects in 3 sectors:

  • Housing
  • FireĀ and Rescue Services
  • Joint Service Centres

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