The Private Finance Initiative: Has the Accounting Standards Board Reduced theScheme’s Value for Money?

Robert Kirk, Anthony Wall

Research output: Contribution to journalArticle

13 Citations (Scopus)


This article examines the state of PFI in the UK following an amendment published by the ASB to FRS 5. It was predicted that this amendment would mean that most properties constructed by the private sector, on behalf of the public sector, would have suddenly to appear on the balance sheets of the latter. This would have led to an unacceptable levelof public sector borrowing and could have undermined the entire rationale for the scheme. Having outlined the objectives of PFI and explained the attitude adopted by the ASB, the article examines the reaction of HM Treasury. The article then demonstrates the likely consequences of the main parties in PFI contracts passing on as much risk as possible to the private sector so as to ensure that the assets remain off balance sheet. It concludes by assessing the expected impact that these actions will have on value for money.
Original languageEnglish
Pages (from-to)529-547
JournalPublic Management Review
Issue number4
Publication statusPublished - 2002


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