Question to the HM Treasury:

To ask His Majesty's Government why the ban on private finance initiative schemes in 2019 extends to transport infrastructure projects.

In 2018, the government retired the private finance initiative (PFI) and PF2 models for all new infrastructure projects, including in the transport sector, due to their fiscal risk, inflexibility and complexity. However, the government continues to remain committed to supporting private investment in infrastructure as set out in the 2020 National Infrastructure Strategy.

The UK Infrastructure Bank (UKIB) was launched in 2021 and is partnering with the private sector and local governments to support over £40 billion investment, including in transport, to help tackle climate change and promote regional and local economic growth across the UK. With £22bn financial capacity, the Bank has already announced 20 deals, including a £10m loan to support green bus routes in the West Midlands. In addition to the UKIB, a range of revenue support mechanisms are also available for all infrastructure projects.