Leonard calls on SNP to ‘nationalise’ PFI debts

Richard Leonard has called for the SNP Government to follow Labour’s lead and bring PFI contracts “back in-house”.

He said ministers at Holyrood should buy out the £28.8 billion debt on outstanding contracts.

The UK party wants to return the liabilities to the public sector under plans unveiled by Shadow Chancellor John McDonnell.

Mr Leonard said: “The Scottish Government could and should set up a debt disposal department dedicated to raising funds to buy out the total outstanding £28.8bn PFI and NPD debt on operational contracts. Doing this could save the public purse hundreds of millions of pounds.”

PFI was set up by the Tories in the 1990s, but their use was stepped up under Tony Blair’s Labour government.

An SNP spokeswoman said: “This is staggering hypocrisy from Labour given the toxic legacy of PFI deals they signed has left Scotland’s taxpayers with an extortionate bill to pay for schools, hospitals and other key infrastructure.

“Labour’s reckless handling of our public finances continues to rob our local authorities of funds which could be put towards delivering better local services.”

Mr McDonnell’s speech to the Brighton conference renewed the party’s commitment to extend the high speed railway HS2 to Scotland.