MPs have suggested that the Government's replacement for the beleaguered Private Finance Initiative should be held up until the Treasury has issued new assessment guidance.

Commercial secretary to the Treasury, Lord Deighton, has already been forced to play down the idea that the Private Finance 2 (PF2) funding model for major infrastructure projects had been a failure.

Now, despite Treasury protestations that private finance is only used where it can be ‘demonstrated to offer better value for money than a publicly financed alternative', a group of influential MPs has raised questions over how PF2 projects are tested to ensure taxpayers get value for money.