John McDonnell has unveiled a plan to end new Private Finance Initiative (PFI) contracts and bring existing ones back ‘in-house’.
The shadow chancellor told delegates at Labour’s autumn conference in Brighton that “never again will this waste of taxpayer money be used to subsidise the profits of shareholders”.
Delegates cheered and whooped as Mr McDonnell slammed the “scandal” scheme that was set up under Prime Minister John Major but heavily boosted by Tony Blair and Gordon Brown.
What is PFI?
PFI contracts are tendered to private companies by the government.
They are usually for infrastructure projects – like schools, hospitals and transport connections.
A company will borrow the money to build it, but at a higher cost to the government.
The incentive is for firms to build ‘super’ projects with new technology and maintain them over the years.