Private Finance Initiative: Corporation Tax

(asked on 19th December 2017) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, whether he has conducted an impact assessment on the changes to corporation tax rates between 2008 and 2020 on the tax receipts predicted by the value for money assessments in private finance contracts.


Answered by
Steve Barclay Portrait
Steve Barclay
Secretary of State for Environment, Food and Rural Affairs
This question was answered on 8th January 2018

Private finance contracts are assessed for Value for Money using the Green Book before the contract is agreed. Any privately financed option will only be pursued if it is value for money.

Private finance contracts are designed to pass on a number of risks to the private sector, including the risk of a policy change in the corporation tax rates. The private sector takes this risk for the duration of the contract and it is not reassessed once the contract has been entered into.

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