Chancellor abolishes PFI for new infrastructure projects

The Chancellor of the Exquecher, Philip Hammond has announced that PFI and PF2 contracts, through which private companies provide infrastucture, are to be abolished.

This follows the collapse of the construction giant Carillion.

These contracts were originally introduced by John Major's Conservative government but were significantly under Tony Blair's Labour premiership.

Existing contracts will be honoured but no new ones will be signed. There are currently 700 active PFI and PF2 deals which are estimated to cost £199bn by the 204os,

There are several projects due to be funded by the public-private partnership model. According to a Treasury spokesman reported in The Guardian, these will go ahead but be funded "by other means".