Tuesday, April 25, 2006
PFI Debt Hits £90bn
We've just updated our estimate of taxpayer liabilities under the Private Finance Initiative. Previously we've been quoting a figure of £65bn, which was produced last year by Capital Economics. Our new figure is almost 50% higher at £90bn.
This is calculated from the Treasury Budget forecast (Table C19), which gives annual payments under PFI contracts out to 2030-31. Total payments are put at £142bn, and discounted using an average 4.5% yield on conventional gilts gives the present value of £90bn.
So just to recap- and do pay attention- our overall total taxpayer debt is now £1.8 trillion, including this new higher total for PFI liabilities, and an allowance for those newly uncovered contingent pensions liabilities (see this post).
And of course, that still excludes our £7 trillion's worth of unfunded state pension liabilities.
Posted by Mike D at 7:58 pm