Local MP Marcus Jones has today welcomed tough action announced by the Government to save more than £1.5 billion from the Private Finance Initiative. 

Importantly all of the money saved will go to PFI schemes, including the University Hospital in Coventry, used by thousands of Nuneaton residents.

For some time Marcus has expressed grave concern about the method of PFI funding under which the University Hospital in Coventry was built and is now serviced. Marcus believes it has caused a substantial cost drag, and has put huge pressure on the Warwickshire health economy and smaller Warwickshire hospitals such as the George Eliot in his Nuneaton constituency.

In a Written Ministerial Statement delivered to Parliament, Treasury Minister Lord Sassoon laid out Government plans to save more than £1.5 billion on existing PFI deals, and to plough much of that money straight back into frontline public services. 

The announcement comes after a series of pilot forensic investigations by Treasury experts into PFI contracts including one at the Queens Hospital in Romford – where savings opportunities of 5% of annual payments have been identified.

Marcus is part of the PFI Rebate campaign of more than 80 MPs, from all three major parties, who have been calling for savings on the PFI.

Speaking after the announcement, Marcus said: “I am delighted by this news.  Our target to save the tax payer £1 billion has been significantly exceeded.  The government has listened and taken our campaign very seriously.  This announcement will mean real savings in Warwickshire and a real improvement in our local public services.

I now hope that any savings made on the UHCW PFI will help towards loosening the pressure that the PFI scheme has put on the whole Warwickshire health economy.

“The actions announced by the Government are deliberately cautious; they are a long-term solution to a long-term problem.  This kind of detailed forensic work may not be glamorous, but it is vital to achieve these savings and clear up the mess of PFI left behind by the last Labour Government.”