Recommendation 24

We heard from Mr Dalgleish that sometimes, with private finance, government has a misplaced assurance that risk transfer to the private sector equates to risk management by the private sector, which offers a false assurance that the risk lies outside of the public sector.55 Risk management by the public sector is paramount, as past examples have shown that the government will need to step in when suppliers fail, as was the case when Carillion went into liquidation and government had to complete two hospital projects.56