PARLIAMENTARY WRITTEN QUESTION
Private Finance Initiative (3 February 2016)

To ask Mr Chancellor of the Exchequer, what progress his Department has made on the replacement of the value for money assessment quantitative assessment tool for comparing private finance and conventional procurement options; and which PF1 and PF2 projects used (a) the original value for money assessment quantitative assessment tool or (b) any replacement tool.

Asked by:
Ms Stella Creasy (Labour)

The Government’s approach to appraisal is set out in the Green Book. This provides a common, standard method for comparing all public spending decisions that use central government funding; the approach to appraising potential PPP projects is consistent with this central guidance.

The quantitative assessment tool was in place from August 2004 until its withdrawal in December 2012, all projects which commenced between these dates should have used the tool. For details of specific projects during this period, please see the spreadsheet ‘Current projects as at 31 March 2014’ at the following link: https://www.gov.uk/government/publications/private-finance-initiative-projects-2014-summary-data

A replacement quantitative assessment tool has not been issued by HM Treasury due to the limitations of standard models; since December 2012 procuring authorities have undertaken appropriate quantitative assessment in accordance with the principles set out in the Green Book.

Answered by:
Greg Hands (Conservative)
8 February 2016