The Treasury has called on public bodies to get tougher on refinancing PFI deals. As the credit crunch has put the squeeze on the deals, funders are calling for bigger margins to make the deals worthwhile. However, that opens them up to potentially-higher refinancing, if the economy returns to its pre-credit crunch levels. In a bid to prevent firms making too much extra cash, the Treasury has changed the rules on refinancing profits. Currently, refinancing profits are split evenly between investors and the taxpayer. Under the new rules, the first £1m will be split in that way, the following million will be calculated 60/40 in favour of the taxpayer, and 70% of any further profit will go to taxpayers. Under current market conditions, PFI deals are still getting the go-ahead as the government-backed deals are seen as a safe bet amid the current financial turmoil.