£200bn cost of PFI deals locked till 2040s

TAXPAYERS will be liable for £199billion of debt from public-private contracts until the 2040s.

Whitehall and councils are tied into at least 700 Private Finance Initiative deals, says the National Audit Office (NAO).

Under the contracts, firms receive longterm payments for financing and building public facilities. The NAO says taxpayers doled out £10.3billion over the past 12 months – and face similar charges for years even if no new deals are struck.

The NAO report comes amid the fallout over the collapse of construction and outsourcing giant Carillion.

Jeremy Corbyn told Theresa May at Prime Minister’s Questions yesterday PFI was a ‘racket’. ‘These corporations need to be shown the door,’ said the Labour leader. ‘We need public services provided by public employees with a public service ethos and a strong public oversight.’

A Government spokesman said: ‘Many vital infrastructure projects like roads, schools and hospitals are paid for by PFI and its successor PF2, stimulating our economy, creating jobs and delivering better public services.

‘We have reformed how we manage PFI contracts and through PF2 have created a model which improves transparency and offers better value for money.’

SHARES in Interserve, one of Carillion’s biggest rivals, fell more than 15 per cent at one point yesterday as panic over the outsourcing sector spread.