We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Another example of Labour profligacy

Wookster
Posts: 3,795 Forumite
NHS facing £65bn 'mortgage' bill for PFI
The NHS in England faces a total bill of £65bn for new hospitals built under the private finance initiative (PFI), six times more than the buildings cost, new figures show.
Published: 5:57AM BST 13 Aug 2010
The NHS in England faces a total bill of £65bn for new hospitals built under the private finance initiative (PFI) Photo: ALAMY
Figures obtained by the BBC show that some NHS trusts are spending more than 10 percent of their turnover on the annual ''mortgage'' repayments.
Under PFI, private companies win contracts to build and maintain new hospitals and mental health units and the NHS pays off the ''mortgage'' over around 30 years.
The 103 schemes were valued at a total of £11.3bn when they were built.
But when rising fees and additional costs such as maintenance, cleaning and catering are taken into account, the NHS will have to pay back £65.1bn over the lifetime of the schemes. Some contracts are reportedly so restrictive that trusts are forced to pay hundreds of pounds just to get half a dozen pictures put up.
According to the data, the NHS currently pays back a total of £1.25bn each year but this figure is expected to increase until 2030 when it will hit £2.3bn, the BBC reported.
http://www.telegraph.co.uk/health/healthnews/7942296/NHS-facing-65bn-mortgage-bill-for-PFI.html
This is another appalling example of how Labour played fast and loose with your money. Because Gordon thought he had abolished boom and bust he didn't feel the need to extract value for money.
Thank god these monkeys are out.
0
Comments
-
Dont blame my mate Gordon.0
-
http://www.telegraph.co.uk/health/healthnews/7942296/NHS-facing-65bn-mortgage-bill-for-PFI.html
This is another appalling example of how Labour played fast and loose with your money. Because Gordon thought he had abolished boom and bust he didn't feel the need to extract value for money.
Thank god these monkeys are out.
But the original BBC article had a quote from the current govtBut the government said the 103 schemes were providing value for money.
http://www.bbc.co.uk/news/health-10882522'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Why didn`t they just nip down to Northern Rock and borrow the £11.3bn on a 100% IO mortgage ? They`d have paid a few years interest at about 5%, then when the Wreck were bailed out, the taxpayer could have settled the bill. Better than now owing £65bn, eh ?30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0
-
Does anyone know what a PFI hospital looks like after 30 years without update?
Or 15 years, for that matter.
Suppose some of these places are in need of a mid-life facelift, do we have to go back to the original supplier and accept their upgrade prices?
Luckily for any current politician, it is someone else's future problem.0 -
We can't expect the baby boomers to have sub standard hospitals during retirement can we.0
-
There would appear to be scope for reducing spending here too:
http://www.telegraph.co.uk/health/7945785/Councils-pay-for-prostitutes-for-the-disabled.htmlBeen away for a while.0 -
Does anyone know what a PFI hospital looks like after 30 years without update?
Or 15 years, for that matter.
Suppose some of these places are in need of a mid-life facelift, do we have to go back to the original supplier and accept their upgrade prices?
Luckily for any current politician, it is someone else's future problem.
the contracts are to build and maintain, rather than just build, which is presumably one of the reasons why the cost is much more than the construction cost. the other additional costs being, according to the article, interest, cookery and catering. i'm not saying it is value for money, but it doesn't appear to be the case that this is £11.3bn cost of construction and £54.7bn interest.
mind you, "maintain" is not defined by the article so it could be that it just means they have to pay a million quid for a few handymen to fit a new tap washer now and then.0 -
I think the problem is that if the catering and maintenance are part of the PFI contract, then the PFI company can charge whatever ridiculous prices it feels like, and the hospital managers have no freedom to find somebody else more competitive.Do you know anyone who's bereaved? Point them to https://www.AtaLoss.org which does for bereavement support what MSE does for financial services, providing links to support organisations relevant to the circumstances of the loss & the local area. (Link permitted by forum team)
Tyre performance in the wet deteriorates rapidly below about 3mm tread - change yours when they get dangerous, not just when they are nearly illegal (1.6mm).
Oh, and wear your seatbelt. My kids are only alive because they were wearing theirs when somebody else was driving in wet weather with worn tyres.0 -
chewmylegoff wrote: »the contracts are to build and maintain, rather than just build, which is presumably one of the reasons why the cost is much more than the construction cost. the other additional costs being, according to the article, interest, cookery and catering. i'm not saying it is value for money, but it doesn't appear to be the case that this is £11.3bn cost of construction and £54.7bn interest.
mind you, "maintain" is not defined by the article so it could be that it just means they have to pay a million quid for a few handymen to fit a new tap washer now and then.
I was thinking more about what an operating theatre of 2025 looks like, compared with today. With the advancements in medicine it could be very different.
I suspect new theatres, new monitoring stations, are less likely to be covered than tap washers.0 -
The issue that I have with PFI is that the companies that undertake it are absolutely huge. The structure of the deal means that only the very largest companies (or consortia) can bid for the deals. This excludes smaller companies that may have provided a better deal. In terms of maintenance, this means the hospital can't just call in the local locksmith for a broken door, they have to call the PFI provider, who then adds on their cut before calling in the same locksmith. While they do provide work for smaller contractors, a complaint I've often heard is that they get totally scr*wed to provide the lowest possible cost deal.
Although 3 years old, this is a really good article on PFI and what's right/wrong with it:
http://www.moneyweek.com/news-and-charts/economics/whats-wrong-with-pfi.aspxPlease stay safe in the sun and learn the A-E of melanoma: A = asymmetry, B = irregular borders, C= different colours, D= diameter, larger than 6mm, E = evolving, is your mole changing? Most moles are not cancerous, any doubts, please check next time you visit your GP.
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards