Oral Answers to Questions

Debate between Eleanor Smith and Robert Jenrick

Tuesday 22nd May 2018 Commons Chamber

[Robert Jenrick]

My hon. Friend highlights the cost and legacy of the PFI projects signed off under the last Labour Government. Hon. Members can be assured that we will use this approach wisely and selectively, in particular for the most complex infrastructure projects requiring a transfer of risk and the expertise of the private sector.

[Eleanor Smith (Wolverhampton South West) (Lab)]

On PFI hospitals, the National Audit Office report recently found

“no evidence of operational efficiency”,

and that in the NHS,

“the cost of services, like cleaning…hospitals is higher under PFI contracts.”

Will the Chancellor explain why his Government persist with imposing higher costs than necessary on local health budgets instead of ensuring value for money for the taxpayer?

[Robert Jenrick]

I think that the hon. Lady is having amnesia. These contracts—86% of the contracts and 91% by value—were signed under the last Labour Government. In respect of some of the items that she mentioned, such as cleaning and security services, we have reformed PFI contracts under PF2 so that those items are not included in the standard contract.