EXCLUSIVE: A Labour government would look to fund projects using PF2, shadow infrastructure minister Lord Adonis has said.
They confirmed in association with Sweett Group, Lord Adonis said “it is distinctly possible for projects to be funded with PF2” when considering how to finance large schemes across the country.
Although he refused to suggest what projects could benefit from a privately financed route – arguing that such decisions have to be made on a project-specific basis, based on cost-effectiveness – he added that the Labour party does “not have closed minds” on the issue.
“Maybe a Labour government would take a less ideological approach than the current government’s aversion to PFI,” he continued.
Lord Adonis also revealed that a Labour government would be open to exploring other models of private finance, such as the non-profit distributing (NPD) model used in Scotland and now Wales. “We need to look at what the Welsh and Scottish are doing,” he said.
He also suggested that there is likely to be an increase in spending on school capital projects under a Labour government, saying there will be a “significant need for new schools” during the next Parliament.
However, he ruled out bringing back a Building Schools for the Future (BSF) programme, which he was involved in during his time as a junior education minister. “We are not proposing to reinstate BSF and all the bureaucracy that went with that,” he said.