Question to the Department of Health and Social Care:

To ask the Secretary of State for Health, pursuant to the Answer of 17 July 2017 to Question 4502 on Department for Health Private Finance Initiative, if he will publish the full value-for-money framework applied by his Department to PF2 projects.

In November 2011 the Coalition Government announced a complete reform of the Private Finance Initiative (PFI) model after a review. This recognised the need to address the widespread concerns with PFI – too slow and expensive; too inflexible and a lack of transparency. A new Public Private Partnership model to replace the PFI was announced in 2012, Private Finance 2 (PF2). Key features of the new PF2 model include the Government co-investing in projects as a minority shareholder to strengthen the partnership working and share in any returns and exclusion of 'soft' facilities management services such as cleaning and catering to improve flexibility.

As part of PFI review the Coalition Government undertook to revise the value for money guidance. Further guidance ‘A new approach to public private partnerships’ was published in December 2012 which is attached. At Chapter 7 ‘Efficiency and value for Money’, Paragraphs 7.28 – 7.31 set out the rationale for changing the value for money test and the immediate steps to be taken.

Fully revised Value for Money guidance on Public Private Partnerships is to be included as an annex in a revision to HM Treasury’s Green Book which is currently being prepared for publication.