Conservative Deputy Leader Councillor Graham Morris is warning that there are considerable financial and operational risks associated with maturing PFI agreements that need to be managed properly to avoid harming important public services.
Private Finance Initiative (PFI) schemes were widely used by the Labour Government in the 2000s to finance large infrastructure projects by entering into long-term contracts for their construction and leasing with private companies.
In a local context, these were primarily applied in education rebuilds under the Bristol Schools Phase 1 (PFI) 26-year contract which expires in 2030. This financed four new secondary schools: Bedminster Down, Henbury School, Orchard School, and Oasis Academy Brightstowe. Subsequent contracts under the Building Schools for the Future programme and the construction of the Hengrove Leisure Centre have further increased the Authority’s annual payments to tens of millions per year.
Critics point out that PFI is a notoriously expensive form of financing. It is much more costly than the traditional Government funding source for capital projects the Public Works Loans Board (PWLB). Furthermore, the Head of the National Audit Office (NAO) has warned that there is a danger as vital public assets are returned to local authority control, these might not be in a serviceable condition. The run-down has to be carefully managed so that maintenance standards are upheld for the entire length of any contracted term. New PFI contracts for all future projects were effectively banned in 2018.
Now, Cllr Morris is to highlight this problem in a statement to the next Members’ Forum meeting on Tuesday, 10th March 2026.
Cllr Morris (Stockwood) said: “Clearly, operational incentives may change for providers as these agreements come to an end.
“The Public Accounts Committee has also expressed concerns that PFI assets may not always be handed back in a satisfactory condition with many local authorities lacking sufficient in-house expertise to adequately manage expiry.
“Poor preparation can lead to service disruption or expensive contract extensions.
“Therefore, I want assurances that, with the expiry of the first tranche of the Bristol Schools Project, the Council has strategic plans in place to mitigate potential problems.
“All of these assets must be kept to a standard that taxpayers are entitled to expect.”
CONTACT GRAHAM MORRIS: 07469 413315
