In 2005 the Department of Health, as it was then, made two loans under a policy created by HM Treasury called credit guarantee finance, one for the private finance initiative scheme at the Leeds Teaching Hospitals NHS Trust for the Bexley oncology wing and the other for the PFI scheme at the Portsmouth Hospitals University NHS Trust for the redevelopment of the Queen Alexandra Hospital. The purpose of the policy was to reduce the financing costs of private finance initiative deals and improve their value for money. An assessment at the time concluded that these objectives had been met.
It has now been agreed that the Department of Health and Social Care will sell its entire interest in the credit guarantee finance loan which was used for the PFI scheme at Queen Alexandra Hospital, Portsmouth.
The credit guarantee loan which was used for the PFI scheme at Bexley oncology wing, at the Leeds was repaid in full in 2017