Millions lost in PFI funding following review
A scheme which promises to deliver thousands of new homes across the country has had its funding reduced following a series of reviews.
The housing private finance initiative scheme is a government backed project to let councils build, improve and manage homes with a private sector partner.
The scheme was cut to 13 projects in November last year and each of the bidding authorities had to pass a value for money review to ensure they could go forward.
All but one of the schemes has passed the review - Kent Council is expected to pass soon - and figures from five of them show a drop in funding.
Stoke-on-Trent Council, which is bidding to build 390 extra care homes, saw its bid fall from £123.07 million to £108.4 million while Oldham Council, which is bidding to regenerate an estate, had its funding go from £129.3 million to £113 million.
Manchester Council’s bid to regenerate the Brunswick estate has dropped from £118.2 million to £113.1 million and a bid to build 350 affordable homes by Wiltshire Council has fallen from £83 million to £77 million.
Derby Council’s funding to build 95 affordable homes and refurbish 80 has been reduced from £22.25 million to £20.85 million.
Leeds Council has refused to reveal the sums, while other councils are currently collating totals.
The HCA said the drop in funding was due savings and efficiencies discovered in the value for money review.
All schemes must now present a business case to the government to get the final go-ahead to begin development.
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