Osborne to launch PFI overhaul next week

The government’s long-awaited revamp of PFI is set to be unveiled next week alongside the chancellor’s Autumn Statement.

It is understood that the government will publish an update to the Treasury’s standard PFI contract, SOPC version 4, alongside George Osborne’s statement on 5 December.

As revealed by Building earlier this month, the revamp to PFI - originally set to be published in the summer - will mean soft FM services are excluded from standard PFI deals in future, while the returns to private investors from refinancing PFI deals are likely to be capped.

Richard Threlfall, KPMG’s UK infrastructure head, said: “There is potential for the government to limit the upside on PFI contracts without seriously damaging the market on standard deals for schools, hospitals and such like. But for any more ambitious or unusual schemes it could have a serious impact.”

Osborne is also expected to unveil an update of the government’s National Infrastructure Plan and is likely to announce more schemes set to benefit from the £40bn UK Guarantees scheme to underwrite returns on privately-funded priority infrastructure.

The Treasury is understood to have been conducting a trawl of contenders for the guarantees in recent weeks in order to identify schemes for his statement.

The chancellor is also expected to announce a boost in spending on repairs and maintenance projects in a bid to stimulate jobs and growth.

There will be live coverage of the Autumn Statement on www.building.co.uk on Wednesday 5 December