PFI could finance 100 new state schools
By politics.co.uk staff
Private sector money could be used to fund the construction of 100 new state schools, according to a report.
The Department for Education (DfE) is being forced to consider using private finance initiatives (PFI) to fund the construction of new comprehensives because of a 60% cut in its capital budget imposed in last year’s comprehensive spending review.
PFIs, which see private firms paid from future revenue budgets for building schools now, proved popular among New Labour ministers. They have had a mixed record, however, with some projects attracting criticism from value-for-money committees.
Under plans now being drawn up a first batch of 20 schools would be set to open in 2014/15, the Financial Times newspaper reported.
Many more would then be commissioned if the first batch were deemed a success.
The DfE had been planning a massive expansion of England’s schools under New Labour’s Building Schools for the Future programme, but the coalition said it was unaffordable and scrapped it last summer.
An independent review of school building, which reported back in spring, will be responded to by the department shortly, a spokesperson said.
