Government to privatise part of its PFI group

The government is to privatise the projects arm of its PFI taskforce, creating a new body known as Partnerships UK.

Partnerships UK is expected to build business worth around £1bn a year, and will focus on putting capital and officially-endorsed advice into the early stages of new PFI projects.

However, the fact that Partnerships UK will also take an equity stake in the projects it backs has led the CBI to express concerns about its impartiality and possible conflicts of interest. The question being asked is - will the new company be able to get the best deal for the public while also looking for best return for itself?

This latest move coincides with the government's continuing plans to modernise the way it buys almost everything. A new Office of Government Commerce is also planned to streamline procedures and save at least a part of the current Whitehall £13bn annual procurement budget.

Gary Cutlack