Source · Select Committees · Public Accounts Committee
Recommendation 31
31
Not Addressed
Mandate regular inspections of PFI roads by managing authorities to ensure contract compliance.
Recommendation
We asked the Department whether it had completed any evaluations on the benefits that come from long-term funding arrangements such as Private Finance Initiative (PFI) schemes.67 The Department responded that the general view on transport funding was that longer-term funding of assets and infrastructure provided greater certainty and allowed delivery partners to plan, resource and execute work efficiently. However, the Department confirmed that it had not undertaken any evaluations itself, although it does collect data on PFI schemes as part of HM Treasury reporting requirements.68 The Department informed us that as the schemes were ongoing, evaluations had not been conducted despite these contracts not expected to end until 2034.69 It is imperative that whoever is managing the PFI project, normally the Local Authority or Highways England, regularly inspects theses roads to ensure the maintenance is up to date and that they will be returned in the condition specified in the contract. 62 Q 67 63 Q 56 64 C&AG’s Report, para 2.10 65 C&AG’s Report, paras 12, 2.11 66 Q 56 67 Q 48 68 Q 49; Written evidence submitted by the Department for Transport dated 5 December 2024, ‘Local roads in England – Follow up on Private Finance Initiatives’ 69 Qq 50-51; C&AG’s Report, Figure 3 Note 4 17 3 Support for local authorities Updating guidance
Government Response Summary
The government agrees with the recommendation but outlines plans to commission a feasibility study for a monitoring and evaluation framework for *local highways maintenance funding*, rather than specifically addressing the imperative for regular PFI project inspections or PFI scheme evaluations.
Government Response
Not Addressed
HM Government
Not Addressed
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2027 5.2 To ensure the development of a robust and proportionate monitoring and evaluation framework, the department plans to commission a feasibility study in 2025 to understand the current state of evidence, evidence gaps and data collection mechanisms in local authorities. This will then help scope evaluation questions and identify appropriate approaches for monitoring and evaluating the department’s local highways maintenance funding. 5.3 Following the completion of the feasibility study and dependent on its recommendations, a monitoring and evaluation framework will be developed for operation in 2026, with the aim of generating regular evaluation reports, to help understand the effectiveness and impact of the department’s capital funding support for local highways authorities. 5.4 A key part of the monitoring and evaluation framework will be to utilise national data collection mechanisms to understand the effects of the funding on road condition. This could include, for example, data on local roads maintenance gathered through the new Integrated Settlement outcomes framework for Mayoral Combined Authorities. It could also utilise any other data shared by local highways authorities to access their full funding in financial year 2025-26, part of which is being held back until local authorities can prove that they are meeting certain criteria. The department will engage with the Ministry for Housing, Communities and Local government during the design and delivery of the evaluation given their responsibility for the overall funding system for local government.