Source · Select Committees · Public Accounts Committee

Recommendation 4

4

The IPA is not clear what support will be provided to authorities with expiring PFI...

Recommendation
The IPA is not clear what support will be provided to authorities with expiring PFI contracts, and who will provide that support. Each individual authority is responsible for managing the expiry of its PFI contract. When an authority needs help, support is often lacking, or it is not always clear how to access it, with varying degrees of support available from multiple sources across central government. The IPA is building capacity and plans to provide support and advice via its contract management programme. Local Partnerships provide training courses and lessons- learned examples when requested, while the sponsoring department is responsible for drawing on the expertise at the IPA. Some smaller authorities with multiple PFI contracts are being managed by a single person and could benefit more from additional capacity rather than training courses or specialist advice. The IPA asserts that it is working on proposals on how to provide additional resources, on top of those already available at the centre, and whether this is done by departments or regionally. Decisions about this are still outstanding, exacerbating the lack of support for those local authorities most at risk. Recommendation: The Treasury and the IPA should set out, within 3 months, their plan for providing support to all PFI contracts, especially those owned outside of central government. This should cover:
Government Response Acknowledged
HM Government Acknowledged
4: PAC recommendation: The Treasury and the IPA should set out, within 3 months, their plan for providing support to all PFI contracts, especially those owned outside of central government. This should cover: • What support will be made available, including how additional funding will be provided to authorities with limited resources or those with the most challenging contracts. • Who is responsible, between the Treasury, the IPA, departments, and local government, for providing support. • The circumstances under which authorities can access different types of support and the process they need to go through to obtain it. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2021 4.2 The IPA and HM Treasury will write to the Committee in these terms. Of course, decisions on any additional funding will be a matter for ministers to determine in the forthcoming 2021 Spending Review. The envelope for the Spending Review will be set out in due course.