During his Budget speech last November, chancellor Philip Hammond announced the abolition of Private Finance Initiative (PFI) schemes. Once current contracts expire, PFI will be no more. The move was not surprising, given how politically toxic PFI has become and the dwindling number of new contracts signed over the last several years. But the announcement was important because it indicated the Government’s acceptance that PFI has failed.

There is ‘compelling evidence’ that PFI neither transfers risk to the private sector nor does it deliver value for money for the taxpayer, Mr Hammond said.