A council plan to spread the cost of PFI debt over 50 years rather than the initial 25 isn’t “good policy”, a Conservative councillor has claimed — warning it will end up costing the taxpayer more money.
The ‘reprofiling’ of PFI [Private Finance Initiative] payments — deals which saw the private sector investment in public schemes, like schools and roads — helped East Renfrewshire Council plug a funding shortfall of around £18m.
A large chunk of the budget gap was covered by the use of the fiscal flexibility, allowed by the Scottish Government, with the council using £7.5m of a “one-off benefit” of £14.8m this year.
