FINANCE

Public projects burdened by PFI interest payments

Around 700 public sector infrastructure projects are being burdened by higher borrowing from private finance initiative (PFI) funding.

Borrowing from private finance initiative (PFI) funding is burdening around 700 public sector infrastructure projects, whose capital value is £53bn, with further lifetime costs worth over £20bn.

Based on interest rates averaging 2.2% above government borrowing costs, the Financial Times has calculated the difference at between £20-25bn, the equivalent of constructing 40 hospitals.

Jonathan Werran

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