Report by NAO says government needs to learn from 鈥檋ard won lessons鈥�

The National Audit Office has urged the government 鈥渢o make better use of hard won lessons from the extensive PFI programme鈥�.

The spending watchdog made the statement in a report which brought together findings from five PFI projects in the UK. The report stated that the government should develop 鈥渆nablers of success鈥� in PFI procurement by:

  • Collecting better data to inform decision-making
  • Ensuring projects have the right skills 
  • Establishing effective arrangements to test, challenge and, if necessary, stop projects
  • Using commercial awareness to obtain better deals

According to the NAO the case for using private finance also needs to be scrutinised more as cost debt finance increased by 20% to 33% during the credit crisis.

The report however welcomed current plans by the Treasury and Cabinet Office to strengthen project assurance.

Amyas Morse, head of the NAO, said: 鈥淭he public sector should make better use of the hard won lessons from the extensive and substantial PFI programme.

鈥淭his means acting as a more demanding and intelligent customer, by harnessing government buying power through concerted tactics and tougher negotiation.鈥�

Topics