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Private Finance Initiative

Volume 450: debated on Wednesday 11 October 2006

To ask the Chancellor of the Exchequer what total amount has been spent on Private Finance Initiative projects postponed pending further consideration or stopped in the last 12 months. (92196)

Aggregated information is not held centrally. Individual Departments may be able to provide data relating to their own PFI programmes.

To ask the Chancellor of the Exchequer what steps he plans to take to close loopholes permitting private finance initiative (PFI) contract holders legally to avoid paying taxes on PFI contracts. (92387)

All PFI companies are contractually committed to deliver their service subject to the UK tax regime.

Government’s policy in this area .is set out in the “Dear Accounting Officer” letter of 22 May 2003 issued to all government departments regarding Tax Planning and Tax Avoidance.

The full letter is available on the Treasury website at http://www.hm-treasury.gov.uk