I wrote on this blog two weeks ago about how PFI* schemes were struggling to get away in these difficult times – with serious implications for the government. It seems it will be much harder for Gordon Brown to carry out his Keynesian infrastructure programme than he implied a few weeks back.
The PM has claimed that he can simply shuffle forward money from existing three-year budgets to get new schools, hospitals and roads built. But what if this only helps to compensate for the draining away of PFI funding? Read more