Private Finance Initiative (PFI)

Introduced by the Government in 1992 as a way of generating new investment in public services without raising taxes.

Involves private companies building large-scale capital projects such as hospitals and leasing them back to the public sector.

Further information 

PFI: Strengthening Long Term Partnerships (pdf) sets out the Government's approach to its PFI investment programme and to strengthening partnerships with the private sector for the long-term.

The document confirms that the Government sees PFI continuing to play a small but important role in the delivery of modernised public services where it represents value for money. It sets out the results of the extensive research carried out by the Treasury showing that PFI projects are meeting public service requirements in operation.

HM Treasury also has a spreadsheet of current PFI projects.

» HM Treasury