SNP EXPOSE £27.5BN INCREASE SINCE MARCH 30th Nov. 2008.

HIDDEN PFI COSTS ROCKETING OUT OF CONTROL

SNP EXPOSE £27.5BN INCREASE SINCE MARCH

The SNP has rounded on the UK Government over the rocketing cost of the
Private Finance Initiative (PFI), highlighting figures buried in the
Pre-Budget Report (PBR) which show that the UK’s PFI liability increased
between the Budget in March and last week’s PBR by £27.5bn – the biggest
increase between reports ever.
Since 2004 the liability has jumped by £92 billion pounds. The UK
Government buries these figures in an online appendix, but if they were
required, as companies are, to put this on their books it would add
another £216bn to the national debt. PFI liability has gone up almost 75%.
Other key figures from the PBR reveal:
*Final PBR 2008 figure show an increase of 74.42% on the Budget 2004
figure and an increase of 14.58% on the Budget 2008 figure.
*The PBR 2008 figure is a £92.2 billion increase on the Budget of 2004 and
a £27.5 billion increase on Budget 2008.
*Between 2005 and 2007, the average PBR increase on the Budget in the same
calendar year was 6.3% whilst the PBR increase on this year’s Budget is
14.58%.
Commenting on the situation, SNP Westminster Treasury spokesperson,
Stewart Hosie MP, said:
”We have always known that PFI was hyper-expensive, but it is clear from
that the liability is rocketing out of control.
“Labour has absolutely no financial credibility left. PFI is a millstone
round the UK’s neck.
”No wonder Alistair Darling buried the figures deep in the appendices of
the PBR. If the Treasury were required to put this on their books it would
add another £216bn to the national debt.
"We had hoped the pre-budget report would set out when and how the UK
Government is going to bring PFI payments on to the books - instead we see
the piles of secret debt mounting even higher.
"Ironically much of this money is owed to the banks the UK Government has
now bailed out.
"PFI has consistently been shown to be against the long term interests of
the tax payer.
"Instead of sensible investment the Labour Government has been ripped off
by a credit card style con.
"These figures confirm the taxpayer will be paying this hefty credit card
bill for a long time to come.”