A Treasury select committee report into PFIs found that government departments are too ready to use it to conceal debt. This means ministers are "neglecting the long-term value" of using PFI.
The committee also labelled the argument that PFI transfers risk from government to private firms as "illusory". The government "would not be able to allow a number of services provided under a PFI contract to cease for any length of time," it states.
The price of financing projects and repaying investments is higher with a PFI than if the government financed projects such as school building work itself, MPs found.
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