Financial Times FT.com

UK Budget 2006

Plans to scale back PFI for ‘soft services’

By Nicholas Timmins Public Policy Editor

Published: March 22 2006 18:45 | Last updated: March 22 2006 18:45

Treasury plans to apply a much stricter test of whether “soft services” such as cleaning, security and ground maintenance should be included in future private finance initiative projects brought protests on Wednesday from the companies that supply them.

The move, which Treasury officials acknowledge is likely to mean fewer projects including soft services, will “break up the united structure for the delivery of building, maintenance and service delivery”, according to Norman Rose, director-general of the Business Services Association, whose members provide such services.

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