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Top e-government news, updated daily, and regular features from the top people in the public sector.

 

 
News
Hospitals warning over PFI
Modern NHS hospitals built under controversial private finance initiatives could be forced to close wards or shut entirely, an expert has warned. ves could be forced to close wards or shut entirely, an expert has warned.

Tony Harrison, of think tank The King's Fund, says health facilities risk becoming white elephants because they could not cope with policy shifts.

Speaking on Dispatches to be broadcast on Channel 4 tonight, Mr Harrison complains about PFI contracts, which can be for 30 years. He says: "It doesn't make sense to lock yourself into those contracts when you know you're going to have to shift course during that period."

A Treasury spokesman said PFI services delivered what they were contracted to 89 per cent of the time "at minimal risk to the taxpayer". And it would continue to be used "where it is proven to be value for money to do so".
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