Local Education Authorities have been authorised to spend over £650m on school capital projects through the Private Finance Initiative (PFI), Schools Minister Jacqui Smith announced yesterday.

Jacqui Smith

The money, which includes an extra £200m of PFI credits from the Budget, has been provisionally allocated to 21 LEAs to support Public Private Partnership (PPP) projects due to reach contract signature in 2002-03. A total of 174 schools will benefit and there will be over 20 new schools. The projects range from building completely new schools, sports and ICT facilities to renovations in primary, secondary and special needs schools.

The increased amounts available for schools PPP projects are part of the total capital investment in schools. The recent budget increased this total from £7.8bn to £8.5bn over the next three years (2001-04). Capital investment has risen from £683m in 1996-97 to an annual rate of £3.5bn by 2003-04.

"It is very exciting to launch this new wave of schools PPP projects,” said Jacqui Smith, “The enthusiasm shown by public and private sectors to make the most of these opportunities is clear. Since November 1997 over 20 schemes have signed contracts involving 373 schools. Many of these schemes are already operational and the remainder will be shortly. They are demonstrating the benefits that PPPs can bring, not least in helping to raise standards in our schools."

Richard Byatt