Bevan Brittan launches new Social Market Foundation Report on The Future of the Private Finance Initiative

Law firm Bevan Brittan LLP, today announced the launch of a report especially commissioned from a leading independent think tank, the Social Market Foundation (SMF), entitled The Future of the Private Finance Initiative. 

Bevan Brittan recently announced a significant new approach to the provision of legal advice, focussing on the “new dynamic” in the economy created by the increasing interdependence of the public and private sectors.

The report clearly shows that PFI is a success but that work is urgently needed on the long-term management of PFI projects.  Experts from government and the private sector argue that managing ongoing PFI projects, many of which will continue in existence for decades, is the issue now most requiring attention.

The report is based on a series of seminars held at the SMF during Spring and Summer 2004.  The contributors included Geoffrey Spence of HM Treasury, David Finlay of the National Audit Office and Professor Stephen Glaister of Imperial College London.  Ann Rossiter, Deputy Director of the SMF, chaired all three seminars and edited the publication.

Stuart Whitfield, Chief Executive, explains why Bevan Brittan sponsored such a comprehensive review; “Bevan Brittan is focused on developing a new legal culture, not only to address social and economic changes but also to foresee them.  This report shows that PFI has delivered timely and cost effective results but that there are still many issues to address over the governance of PFI projects.  It shows that 55% of projects need to change or adapt in their first two years: that bid teams leave once a project is set up and do not think enough about the long-term; and that contractors sometimes focus on the performance targets rather than the future needs of the public sector.  Altering contracts is costly and difficult.  At Bevan Brittan we are already looking at ways to accommodate change within PFI management structures and this report will help us to foresee and shape the future development of new and more flexible contracts”

The Future of the Private Finance Initiative Report will be launched on Wednesday 17 November at a reception at the House of Commons hosted by Ian Taylor MBE, MP.  Bevan Brittan will follow up this investigative work on PFI in the New Year with a programme of public and private consultations, a programme of opinion-leader discussion groups and, a series of seminars and lectures with an array of world-class commentators and strategists.

Click here to read the report in full.

Click here to read a summary of the report.