HC Deb 07 February 2002 vol 379 cc1138-40W
Ian Stewart

To ask the Chancellor of the Exchequer what the Government's latest estimate is for the financial years 2001–02 to 2003–04 of the(a) capital spending by the private sector resulting from private finance initiative deals signed in those years, (b) likely value of capital spending by the private sector resulting from private finance initiative deals reaching preferred bidder stage in those years and (c) estimated value of payments made by the Government under private finance initiative contracts to private sector providers. [34925]

Mr. Andrew Smith

The current position is as follows:

Table A: Departmental estimate of capital spending by the private sector resulting from deals signed in the following years
£ million
Department 2001–02 2002–03 2003–04
Defence 225 200 100
FCO and Overseas Development 7 9 8
Environment, Food and Rural Affairs 2 16 3
Trade and Industry 38 31 19
Transport, Local Government and the Regions 865 1,015 1,011
Table A: Departmental estimate of capital spending by the private sector resulting from deals signed in the following years
£ million
Department 2001–02 2002–03 2003–04
Education and Skills1,2 28 9 0
Home Office 34 0 0
Legal Departments 17 13 15
Culture, Media and Sport 0 0 0
Health 536 309 120
GCHQ 159 42 7
Work and Pensions 18 67 14
Scotland 364 93 19
Wales 47 0 0
Northern Ireland 31 16 10
Chancellor's Departments 83 15 4
Cabinet Office 0 0 0
Local Authorities3 1,052 1,580 1,800
Total 3,506 3,415 3,130
1 Excludes private finance activity in education institutions classified to the private sector. Includes projects in the voluntary aided schools sector only.
2 PFI activity in local authority schools is included in the local authorities line.
3 Figures represent estimated spend on projects supported by central Government through Revenue Support Grant.

Table B: Estimated aggregated capital value of projects at preferred bidder stage
£ million
Department 2001–02 2002–03 2003–04
Defence 150 270 260
FCO and Overseas Development 0 0 0
Environment, Food and Rural Affairs 0 0 0
Trade and Industry 0 0 0
Transport, Local Government and the Regions1 10 21 21
Education and Skills2 0 0 0
Home Office 80 80 40
Legal Departments 5 47 8
Culture, Media and Sport 0 0 0
Health 0 0 0
GCHQ 0 0 0
Work and Pensions 0 0 0
Scotland 164 25 0
Wales 23 76 53
Northern Ireland 27 54 27
Chancellor's Departments 0 0 0
Cabinet Office 2 4 4
Local Authorities3 0 0 0
Total 461 577 413
1 In addition, substantial private investment is levered in through housing, urban regeneration and other programmes.
2 Excludes PPP/PFI activity in the further and higher education (FHE) sectors, which are classified to the private sector. Includes projects in the voluntary aided schools sector only.
3PFI activity in local authority schools is included in the local authorities line.

Change in total income between
£ billion
Group of taxpayers 1997–98 and 1998–99 1998–99 and 1999–2000 1999–2000 and 2000–01 2000–01 and 2000–02
Top 1 per cent. 8.4 4.2 6.2 2.0
Top 5 per cent. 15.6 8.0 10.0 4.4
Top 10 per cent. 21.8 11.1 12.5 6.1
Bottom 75 per cent. 29.5 13.2 8.2 10.9
Bottom 50 per cent. 14.1 7.0 3.0 6.4
Bottom 10 per cent. 1.7 0.4 0.2 0.9
All taxpayers 64.3 29.9 25.6 20.7

Estimated Payments under PFI contracts (signed deals)
£ million
2000–01 2,809
2001–02 3,981
2002–03 4,548
2003–04 4,875
2004–05 4,899
2005–06 4,926
2006–07 4,939
2007–08 5,014
2008–09 4,845
2009–10 4,769
2010–11 4,569
2011–12 4,426
2012–13 4,179
2013–14 4,116
2014–15 3,949
2015–16 3,961
2016–17 3,956
2017–18 3,894
2018–19 3,340
2019–20 3,346
2020–21 3,461
2021–22 3,066
2022–23 3,062
2023–24 3,033
2024–25 3,064
2025–26 2,681

Note:

Table C shows a forecast of the estimated payments for services flowing from new private investment over the next 25 years. Payments may be lower than estimated because of deductions from the service payments, caused either by the supplier's failure to make the service available or by a failure to meet the required performance standards. In addition, variances may occur because of changes in the service requirements agreed during the course of the contract. Payments may also vary as a result of the early termination of a contract triggering contractual arrangements for compensation on termination.