Private Finance

Private Finance accounts for a significant amount of Government expenditure.  The major use of private finance is in Education, Health, Transport and Defence.  It is used for a variety of projects including buildings such as schools, hospitals, accommodation, and transport infrastructure such as roads. It is also used to provide defence equipment and defence training facilities.

The capital value of upcoming current Private Finance Initiative (PFI) deals is expected to be £13 billion, while the number of operational deals is greater; there are around 600 operational deals listed on the Treasury's website with a capital value of over £50 billion and future payments of over £150 billion. The Government’s wider use of Public Private Partnerships (PPPs) includes large complex deals, like Crossrail and the London Underground, as well as smaller joint ventures on a local level, such as Local Asset Backed Vehicles in the housing sector.

Since 1997 the National Audit Office (NAO) has produced over 80 reports on the value for money of various Private Finance activities including PFI and PPPs, privatisations, asset sales and acquisitions.  The reports include studies on individual deals and programmes and thematic issues such as operational performance, financing, the tendering process and benchmarking.  As well as reports, the Practice disseminates good practice through its events, including the annual Private Finance conference, workshops and regular meetings with stakeholders.  It also provides Secretariat for the International Organisation of Supreme Audit Institutions (INTOSAI) privatisation, economic regulation and PPP Working Group.

Features

Annual NAO Private Finance Conference

Each year the NAO hosts a conference for private finance practitioners. Participants are generally drawn from government departments, local authorities, the private sector, funders and advisers.

Read about the 2009 Private Finance Conference 

NAO presentation to the Department for Business, Enterprise and Regulatory Reform (BERR) Public Services Industry Review

A NAO team led by Ed Humpherson recently gave a presentation to a review of the Public Services Industry by BERR. The BERR review was chaired by DeAnne Julius, a former Bank of England Monetary Policy Committee member.

Read full article: NAO Presentation to BERR Public Services Industry Review

Accounting and Auditing in PFI/PPP Projects

Dr James Robertson and Chris Shapcott delivered a presentation at the Accounting & Auditing in PFI/PPP Projects conference on 6 and 7 November 2006.