PARLIAMENTARY WRITTEN QUESTION
Department of Health: Private Finance Initiative (12 July 2017)

In November 2011 the Coalition Government announced a complete reform of the private finance initiative (PFI) model after a review. This recognised the need to address the widespread concerns with PFI – too slow and expensive; too inflexible and a lack of transparency. A new Public Private Partnership model to replace the PFI was announced in 2012, Private Finance 2 (PF2). Key features of the new PF2 model include the Government co-investing in projects as a minority shareholder to strengthen the partnership working and share in any returns and exclusion of 'soft' facilities management services such as cleaning and catering to improve flexibility.

As part of PFI review the Coalition Government undertook to revise the value for money guidance. Further guidance was published in December 2012.