Fears Grow Over Potential Return to PFI-Style NHS Infrastructure Deals Under Labour
Concerns are mounting that the Labour leadership is preparing to introduce private sector partnerships to fund NHS infrastructure projects — a move critics say could mirror the controversial Private Finance Initiative (PFI) schemes of the past.
Healthcare advocacy group EveryDoctor has been tracking developments over the past year and says growing evidence points to an imminent announcement from Labour leader Sir Keir Starmer and Health Secretary Wes Streeting regarding new public-private partnerships.
According to Dr Julia Patterson of EveryDoctor, four key developments have raised alarm bells:
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Severe NHS Maintenance Backlog: Years of underfunding by previous Conservative governments have left the NHS with widespread infrastructure issues, including crumbling buildings, sewage leaks, and vermin infestations.
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Lack of Government Investment Plans: The Autumn 2024 Budget failed to present a credible plan for repairing existing NHS buildings or investing in new facilities.
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Support from Healthcare Leaders: In recent months, several NHS leaders have publicly expressed support for involving private firms in infrastructure development.
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Unclear Funding for 10-Year Plan: Labour’s flagship 10-year NHS strategy includes 200 new neighbourhood health centres, but the government has not specified how these will be funded.
EveryDoctor believes Labour is likely to unveil the new infrastructure funding model this November. The group fears the plan will resemble previous PFI schemes — which saw around £13 billion in initial investment balloon into an estimated £80 billion cost to taxpayers, with many contracts extending to 2050.
The organisation warns that, despite political assurances of "learning lessons" from past mistakes, a renewed reliance on private capital would amount to further NHS privatisation.
“We’re telling you this now because we think the public deserves to know what’s coming,” EveryDoctor said in a statement. “Our team is preparing to hold MPs accountable and challenge these plans head-on. More details to follow soon.”
Source: EveryDoctor
