Published: Wed, September 27, 2017
Global Media | By Garry Long

UK Labour Government Would Bring PFI Contracts "Back In-House"

UK Labour Government Would Bring PFI Contracts

According to the National Audit Office, in 2013/14 around £10bn was spent on servicing private finance contracts, with about £4bn of this related to debt and interest.

At the same fringe event, Len McCluskey, leader of the Unite union, said he was unlikely to see numerous first days of a Labour government. Although no election is due until 2022, it is preparing for Theresa May's Conservative minority government to fall much sooner. We have already pledged that there will be no new PFI deals signed by us.

Labour's shadow chancellor John McDonnell used his speech at the Labour Party conference to reiterate a point made by the Financial Conduct Authority that there are now over three million people in the United Kingdom trapped by what the regulator calls "persistent debt".

The contracts have been used for decades to fund public infrastructure project using private capital.

Starter cards with low credit limits and high APRs are a way for borrowers to build a credit history which is vital for mortgage applications and other forms of borrowing. Successive governments have attempted to reform the process.

Aides to the shadow chancellor said a Labour government would review all existing PFI contracts and, where necessary, take them over and bring them back in-house.

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As a result, the power company abandoned most basic maintenance in recent years, leaving the island subject to regular blackouts. She posted a short video to that asked her followers to help spread the word about the devastating conditions of Puerto Rico .

Liz Jenkins, partner at law firm Clyde & Co, said the policy, although possible, would bring with it a "significant" rise in finance costs.

And, while the swagger of a strong election result and an influx of young voters has provided a more upbeat political outlook for the party, some business delegates complained it has not resulted in a more collaborative or transparent approach.

She warned that a "nationalisation agenda" with doubts over whether there would be a "market rate" paid, state interventions on wage levels and rising corporation tax would all have a "chilling effect" on investment.

Carolyn Fairbairn, director-general of the bosses' lobby group Confederation of British Industry (CBI), was appalled.

Brighton and Hove's Labour council leader Warren Morgan said he was very concerned at "the anti-Semitism being aired publicly in fringe meetings and on the floor of conference".

"These unaffordable Labour promises wouldn't improve public services and the costs would just rack up and up", said Ms Truss. I don't think there will be, but you never know. New measures have been asked for by the Financial Conduct Authority to assist people who are locked in a "persistent debt". That means people who have paid more in interest (and other charges) than they have paid of the initial amount borrowed over an 18 month period. "I can tell you today that when we go into Government we'll bring these contracts and staff back in-house".

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