The PFI ‘time bombs’ that will cost taxpayers £200bn

Liverpool council owes further £47m in fees for abandoned school that cost £24m to build

Carillion logo in the London skyline
Report was published following the collapse of construction giant Carillion this week
(Image credit: DANIEL SORABJI/AFP/Getty Images)

Taxpayers will pay almost £200bn to cover government private finance initiatives over the next 25 years, the UK spending watchdog has warned, fuelling accusations that many of the deals are “financial time bombs”.

The National Audit Office (NAO) report - released after construction giant Carillion collapsed this week under a £1.5bn debt pile - points to egregious examples of profligate spending including schools that costs 40% more than those funded by government borrowing, and hospitals that cost up to 70% more.

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