Tories’ biggest donors to profit from #PFI2 #NHSloans – and won’t pay tax

PFI (Private Finance Initiative) was a scheme to use private investors’ money to build and run new hospital facilities. It was a disaster and still costs the NHS, according to the Times, around £2 billion a year in repayments, with some hospitals reporting that they’ve had to cut services in order to meet the repayments.

Today, the Times also announced that NHS boss Simon Stevens has been talking to ‘hedge funds‘ about a £10 billion loan for ‘infrastructure’ – essentially to stop buildings and systems falling apart:

pfi2.png

Private cash for buildings and other infrastructure – no doubt it will be named something different, but to all intents and purposes this plan is PFI 2.0.

This is being presented as something that is “likely to cause palpitations in Whitehall”, as if the government has been blindsided by the plan – but the Times admits that

Ministers have accepted the need for some private cash after an official review concluded that £10 billion was required to boost an “insufficient” NHS infrastructure budget

‘Accepted the need’. Right.

Research in 2015 showed that almost half of all donations to the Tory party come from hedge fund managers. Hedge fund managers who are now being invited to participate in a huge relaunch of PFI.

‘Palpitations’? More like:

anticip.png

The Times speculates about interest rates of 1.1%, but in 2011 CPAC (Commons Public Accounts Committee) analysed PFI deals and found the average effective rate to be 14%. Even with a headline rate of 1.1%, finance companies are experts at building in ways to increase their profit margins.

CPAC’s report also pointed out that hardly any of the income earned on these deals resulted in any tax paid into the British economy, as the vast majority of beneficiaries are registered offshore.

So we’re looking at a situation in which the government admits ten billion pounds are needed for essential NHS infrastructure and won’t provide it – and are forcing NHS management to borrow from private finance firms who just happen to be the most important donors to Tory party funds.

This is what Tory ‘economic competence’ looks like. While we, the British public pay for it – without even getting anything back in taxes – a huge tranche of our NHS infrastructure effectively becomes privately owned, all done by ‘borrowing via the back door’.

The Tories – one hand washing the other, mutual back-scratching, they’re all in it together. Call it what you will, they simply cannot be trusted with the NHS – and we need to raise the stink this venal move deserves.

The SKWAWKBOX is provided free of charge but depends on the generosity of its readers to be viable. If you found this information helpful and can afford to, please do click here to arrange a one-off or modest monthly donation via PayPal. Thanks for your support so this blog can keep bringing you information the Establishment would prefer you not to know about.

8 responses to “Tories’ biggest donors to profit from #PFI2 #NHSloans – and won’t pay tax

  1. Doctors.net reports the investment is probably in STPs, which NHS England has described as a “huge opportunity” for the private sector.

    STPs involve REPLACING THE NHS with a US system called “Accountable Care Organizations”. Labour’s shadow health team has said it will check whether ACOs are public or private. In answer to that: The one in Manchester is being put out to tender.

    Please note and follow up this info. We need to get this stuff out and change the idiotic funding-centred narrative. Thank you.

    Liked by 3 people

  2. Pingback: Tories’ biggest donors to profit from #PFI2 #NHSloans – and won’t pay tax | Jaffer's blog·

  3. Pingback: Tories’ biggest donors to profit from #PFI2 #NHSloans – and won’t pay tax « Derby People's Assembly·

  4. Pingback: Tories’ biggest donors to profit from #PFI2 #NHSloans – and won’t pay tax | paulh121·

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s