It was devastating to learn that our local hospital, Whipps Cross were downgrading and laying off nurses to pay £100 million a year to a private company for their PFI contract. PFI devastates our local services, creating huge costs to deliver vital services. Schools, hospitals, police stations etc. are all crippled trying to keep up with extortionate PFI contracts. I recently found that our local council has £59 million to give to these private companies over the next 2-5 years, of which £16.6 million is interest alone, put simply; 28% of the money we spend on PFI contracts goes out in interest to private companies. Nationally, we found local services on average spend 35% of their contracts in interest alone; not on services.
I’m concerned that Whipps Cross and 9 of our schools are locked into these exorbitant contracts to just a few companies that make billions of pounds a year off similar contracts across the country. This is why I'm calling on the government to start taxing the profits of these companies, a windfall tax, to force them back round the table to renegotiate the awful contracts our local schools and hospitals are stuck into.
You wouldn’t pay 28% interest on your mortgage, so why would we lock our local services into doing so for 30+ years? Politics. It’s clear that PFI has failed to save the money we were promised a decade ago. I’m working hard to get this windfall tax into law, for the sake our public services both locally and nationally.