Published total cap on PFI and other contract costs

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Published total cap on PFI and other contract costs

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Concern has been raised within and outside government about the costs of PFI contracts, which have recently been estimated by the Guardian at £300billion. In order to put a limit on taxpayer exposure to contracts which may last for decades, every PFI or other long-term public sector contract should have a break clause (a way for the government to exit the contract by paying a fee) and the total cost of such break clauses across the public sector should be published at least annually. Publishing a total cost would remove any concerns about commercial confidentiality, which is the reason ofted cited when public sector bodies refuse to release information about break clauses.

Such a statistic would both give the public an indication of the total size of its PFI liabilities, and act as a cap on such costs.

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