Progress on the Government’s initiative to achieve £1.5 billion worth of savings from operational PFI contracts.

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In July 2011, the Government announced plans to deliver £1.5 billion of savings across operational Private Finance Initiative (PFI) projects in England. The initiative is co-ordinated by HM Treasury and has since been extended to cover a small number of other Public-Private-Partnership (PPP) contracts.

As at June 2013, government departments had reported £1.6 billion of formally agreed savings to the Treasury, as well a pipeline of further expected savings yet to be formally agreed. The total remaining charges across the 684 PFI and PPP operational contracts at that date was £207 billion. All figures are in nominal terms.

Most of these savings are forecast future savings, which will be realised over the remaining years of the contract, rather than immediately. The report examines the reliability of these reported savings.

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