Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps he is taking to increase value for money for the Exchequer from private finance initiative arrangements.

PF2 is one of a range of procurement routes available to projects. Value for money is the primary driver when choosing a procurement route.

PF2 offers improved value for money for the public sector and the taxpayer compared to the Private Finance Initiative. An improved procurement process, public sector equity co-investment, more efficient risk allocation and greater flexibility of service provision has improved the cost effectiveness of PF2 relative to the Private Finance Initiative.

The Government has taken significant steps to improve the cost effectiveness of existing PFI contracts, including delivery of £1.5 billion of savings, which has been assured by the National Audit Office, and identifying potential further savings of more than £1 billion.