• IPPR have launched a new report which calls for the end of the legacy of PFI by introducing a right-to-buy scheme.
• IPPR analysis of latest HMRC data found that PFI, the scheme which funded capital spending through private finance, is significantly costing the NHS. For just £13bn of investment, the NHS has been landed with an £80bn bill.
• NHS trusts will pay £2.1bn on PFI repayments this year, rising to over £2.5bn in 2030.
• The report says that the NHS will not be able to provide a modern health service unless it has the funds to invest in new technology and infrastructure. It calls for an additional £5.5bn a year for NHS capital.

Responding to IPPR’s new report ‘The Make-do-and-Mend Service: Solving the NHS’ capital crisis’, the deputy chief executive at NHS Providers, Saffron Cordery said:

“This report from the IPPR reinforces why we have launched a campaign to rebuild our NHS and create a 21st century health service, delivering exceptional patient care. We are calling for the government to set a multiyear NHS capital funding settlement; to commit to bringing the NHS’ capital budget into line with comparable countries; and establish an efficient and effective mechanism for prioritising, accessing and spending NHS capital based on need.

“What the NHS now needs is clarity on how trusts will be able to access finance schemes and the part that they may have in NHS infrastructure in the future.

What the NHS now needs is clarity on how trusts will be able to access finance schemes and the part that they may have in NHS infrastructure in the future.

Saffron Cordery    Deputy Chief Executive

“We know the government shares our aim of a properly-funded and well-designed system of capital funding, but this support now needs to be translated into urgent action, because the risk to patients is rising every day.

“The option for trusts to have a right to buy out these contracts is welcome but with NHS funding constrained and diverted away from capital over the last few years, it’s vital to remember that trusts don’t always have the means to do this.

The option for trusts to have a right to buy out these contracts is welcome but with NHS funding constrained and diverted away from capital over the last few years, it’s vital to remember that trusts don’t always have the means to do this.

Saffron Cordery    Deputy Chief Executive

“Not all PFI deals are alike: there are many trusts with well designed PFIs that have benefited their patients and that are good value, but equally it is undoubtedly true that some deals were badly designed and have left trusts with repayment bills that they cannot afford.”