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Departments: Private Finance Initiative

Volume 458: debated on Wednesday 14 March 2007

To ask the Secretary of State for Health for which future projects her Department is considering a private finance initiative deal; what the estimated lifetime value of each potential contract is; and what period each will cover. (125185)

The following private finance initiative schemes are awaiting a formal review by the Department as part of the reappraisal process.

PFI scheme

Pre-review estimated capital value (£ million)

Hillingdon Hospital

338

Royal National Orthopaedic Hospital

144

North West London Hospitals—Northwick Park

305

Southend Hospital

100

Taunton and Somerset

79

Papworth Hospitals

148

Sandwell and West Birmingham Hospitals—2010

500

West Hertfordshire Hospitals

330

East and North Hertfordshire

550

Southampton University Hospitals

69

Royal Liverpool and Broadgreen University Hospitals

500

Royal Liverpool Children’s Hospital

300

Leeds Teaching Hospitals—Children’s

260

Heatherwood and Wexham Park Hospitals

200

United Bristol Healthcare

104

Mersey Care

170

Royal Wolverhampton Hospitals

317

As the schemes yet to be reviewed are at a very early stage in the procurement process, it is not yet possible to estimate the likely annual payment and therefore total sum payable of the lifetime of the contract. Under the national health service standard form contract (introduced in 1999) the standard contract length exclusive of build period is 30 years, although this can be varied on a case-by-case basis subject to the agreement of the Department.

To ask the Secretary of State for Health (1) what percentage of her Department’s budget was taken up by private finance initiative commitments in each of the last 10 years for which information is available; and if she will make a statement; (125196)

(2) what percentage of her Department’s budget will be taken up by public finance initiative commitments in each of the next 10 years, assuming that the budget grows in line with the Treasury’s estimates for gross domestic product over the period; and if she will make a statement.

The first private finance initiative (PFI) scheme become operational in 2000. There are therefore no payments prior to this date.

Revenue figures are not available beyond 2007-08 as the Department has not yet entered into its Comprehensive Spending Review with HM Treasury. It is therefore not possible to forecast annual payments under PFI as a percentage of overall revenue expenditure.

The information is detailed in the following table.

Net NHS revenue expenditure (£ million)

Aggregated payments under PFI (£ million)

PFI payments as a percentage of overall NHS revenue expenditure

2000-01

Outturn

42,686

59

0.14

2001-02

Outturn

47,289

187

0.40

2002-03

Outturn

51,935

262

0.50

2003-04

Outturn

61,583

357

0.58

2004-05

Outturn

66,473

382

0.57

2005-06

Estimated Outturn

73,697

469

0.64

2006-07

Planned

79,179

619

0.78

2007-08

Planned

85,974

728

0.85