NHS: Private Finance Initiatives

16. What assessment his Department has made of the potential impact of private finance initiatives on the NHS.

The health PFI programme between 1992 and 2015 delivered 126 new acute facilities for the NHS, and over £12 billion of investment in the estate. NHS PFI contracts are held by individual trusts, and the National Infrastructure and Service Transformation Authority publishes annual data on them, including the costs of all those PFI projects. The last PFI contract was signed in 2015. We are not bringing back PFI; we are bringing forward a new public-private partnership model that will draw on lessons learned from the past, to ensure that we deliver the commitments of our 10-year plan.

Alder Hey children’s hospital NHS foundation trust in my constituency faces significant financial pressure due to its private finance initiative deal. That is because over 50% of its total PFI payment is going towards interest charges, with Alder Hey still owing £380 million by 2045 for the PFI investment of £189 million. That is nearly £200 million being drained out of Alder Hey over the next two decades, because of the now discredited PFI system. That money should be spent on making sick children better. What assessment has the Department made of the potential impacts of the use of PFI to fund the recently announced neighbourhood health centres?

My hon. Friend highlights an important example, where something is clearly not going well. The Department is working with the team at Alder Hey to help rectify some of those problems. That is why we will not be using that PFI model in future. We have learned those lessons and we will take forward a new PPP model for our neighbourhood health service that will transform care for people in his constituency and across the country.