Lamb: £2.5bn hospital PFI projects cancelled

12.35.00pm GMT Tue 3rd Mar 2009

Over £2.5bn-worth of hospital building projects are under threat due to problems with the Government’s Private Finance Initiative, figures uncovered by the Liberal Democrats have revealed.

12 major PFI projects have been cancelled, half of all NHS projects that were due to be finalised this year or last.  Projects that cannot find private finance to fund them include a £711m scheme for University Hospitals of Leicester and a £600m project at Leeds Teaching hospitals.

Commenting, Liberal Democrat Shadow Health Secretary, Norman Lamb said:

"These figures sound the death knell for major PFI projects.

"PFI provided bad value even in the good times, but it is clearly collapsing now that times are tough.

"This also demonstrates the gap between rhetoric and reality when it comes to the Government’s claims to be bringing forward capital investment, when in fact it is cancelling and delaying projects left, right and centre."

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