Hospitals to shell out £80BILLION to repay PFI loans branded a ‘scandal’ by Lib Dem leader : Mirror.

The massive sum – which could have gone on vital staff, equipment and drugs – is nearly seven times as much as the £12.4billion borrowed in the first place.

 

The scandal of private finance initiatives will see hospitals shelling out over £80billion to repay loans .

The massive sum – which could have gone on vital staff, equipment and drugs – is nearly seven times as much as the £12.4billion borrowed in the first place.

This year alone, the struggling NHS will have to pay an estimated £2billion to service the debt – more than £3,700 every minute.

Liberal Democrat leader Tim Farron blasted PFI deals as “without doubt the worst mortgage available” and said: “This is a scandal of epic proportions.”

The £80billion bill is the result of deals which saw private investors take the risk of building and operating hospitals and clinics.

In return they receive repayments, typically spread over 25 to 30 years, that far exceed the original project cost.

St Bartholomew’s Hospital one of many that took a PFI deal (Photo: Getty)

The biggest PFI deal was to build two new hospitals in London on the sites of old existing ones – the Royal London in Whitechapel, in the East End, and St Bartholomew’s in the City. The rebuild cost £1.1 billion but the final bill will be more than £7billion, with the Barts Health NHS Trust making payments until 2049.

Last year the trust was put into financial special measures after failing to pay down its deficit quickly enough, having overspent by £135million in 2015.

This year it will have to pay another £135million just to service the debt.

Mr Farron hit out after the scale of the issue was made clear by figures revealed this week.

Read More : Mirror.

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1 Comment

  1. Surely the Torags could enable a retrospective law (Ian Duncan Smith can do it) preventing these obscene charges.
    Ooops! Forgot retrospective law is only used on the poor…

    Like

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