The Commercial Secretary to the Treasury, Lord Sassoon, has announced a pilot scheme in an effort to make savings on costly private finance initiatives (PFIs).
PFIs have previously left the healthcare sector with a huge debt, which trusts have been struggling to pay off in recent years.
The PFIs were thought as key to making sure that important works go ahead in areas where funds are not immediately available, but as debts have piled up the system has become more controversial.
It is estimated that the NHS would have to repay a total of £65bn on works that have only a total value of £11.3bn. This means that the sector would have the pressure of debts when future renovations are needed.
Contractors working with Urban Space Products on new hospital sites have had their bid deadlines put back as works are delayed.
The new review, however, will mean savings to PFIs will give hospitals more flexibility when it comes to small works and renovations to hospitals buildings and sites.
http://archinect.com/features/article.php?id=105051_0_23_0_M
http://www.building.co.uk/news/treasury-looks-to-pfi-projects-for-savings/5013423.article
http://www.hm-treasury.gov.uk/press_22_11.htm
http://www.straitstimes.com/BreakingNews/Asia/Story/STIStory_645739.html
http://www.greenwisebusiness.co.uk/news/green-city-boris-johnsons-strategy-for-a-sustainable-london-632.aspx
http://www.smarthealthcare.com/private-finance-initiative-nhs-pfi-repayment-13aug10