SNP attack Labour’s ‘toxic legacy’ over PFI projects

Hard-up councils in Tayside and Fife will have to shell out nearly £50 million this year alone because of what the SNP call Labour’s “toxic legacy” of school building.

The Nationalists have accused Kezia Dugdale’s party of condemning local authorities to years of harsh repayments under their controversial private finance initiative.

Perth and Kinross Council faces a £16m bill in 2017/18 for its school building programme under the Labour Government, compared with Fife (£15.7m), Dundee (£11.5m) and Angus (£6.2m).

In total, Tayside and Fife councils will have stumped up an estimated £1.6bn by the 2040s for school building projects initially valued at £377m.

That outlay includes operating and maintenance charges, as well as repayments.

PFI involves the private sector constructing and managing school buildings in return for a fee, with contracts usually running for 25-30 years.

SNP MSP James Dornan said the figures show how Labour’s “reckless handling” of public finances “continues to rob our local authorities of funds”.

“It’s high time Labour apologised for this toxic legacy that they’ve left for our schools and councils across the country,” he added.

David Ross, the leader of Labour-run Fife Council, said schools built under PFI come in at broadly the same cost as for those built in other ways, once the maintenance costs are factored in.

“The main pressure on council services across Scotland is the cut in funding imposed by the SNP Government which will see £16m cut from Fife’s core grant next year,” Mr Ross said.

A Dundee City Council spokeswoman said the city’s PFI projects were completed in 2009 and provided six new primary schools and two new secondary schools.

“The unitary charge aspect of the project is reported publicly through the city council’s budget setting process every year, where it is included in spending on the city’s schools, and is also in the council’s statutory accounts,” she added.

David Ross.