Written Evidence from Sir Bob Kerslake
HOUSING PFI
I wish to inform you of the outcome of the Department's
SR10 position on Housing PFI in advance of the PAC's PFI in Housing
hearing of 24 November.
The Spending Review Settlement provides funding for
all Housing (also Fire and Joint Service Centre) PFI projects
under contract and in procurement but no funding for pipeline
projects.
The Secretary of State has agreed projects in procurement
should continue to be supported by the Department, subject to
rigorous demonstration of value for money.We currently expect
decisions on individual projects to be made in December.
However, as pipeline projects can no longer be guaranteed
PFI funding at this stage, Housing PFI pipeline projects (including
all Round 6 projects) cannot continue to receive funding support.
The HCA will work with local authorities to consider
future options. However we will not raise local authority expectations
on alternative funding given the Department's tight SR10 capital
and resource funding settlement.
We are in the process of advising local authorities
of the position on their projects.
I trust that the early setting-out of the Department's
SR10 Housing PFI position is helpful to both the NAO and PAC.
16 November 2010
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