PFI
Helping public authorities manage PFI and PPP contracts, protect public value and prepare for expiry.
PFI and PPP contracts support essential public infrastructure and services. As increasing numbers approach expiry, authorities must maintain contract performance while preparing for asset handback and future service delivery.
This requires careful coordination across contract management, finance, legal, procurement, property and service teams. Limited capacity, incomplete documentation or late planning can increase the risk of financial loss, operational disruption and unexpected liabilities.
Our impact
Local Partnerships helps public authorities strengthen contract management, secure value and prepare for expiry.
During 2024–25, our work helped Liverpool City Council secure £700,000 of remedial works at no additional cost. It also supported Tower Hamlets to recover more than £120,000 in penalties and £1 million in profit share, which was reinvested in decarbonisation.
We advised Essex County Council on a refinancing that resulted in a direct cash receipt of £1.25 million after costs and supported 13 contracting authorities through the PFI Benchmarking Helpdesk.
Effective PFI management protects public money, supports service continuity and helps ensure contractors meet their obligations.
Early expiry planning gives authorities time to understand asset condition, resolve contractual issues, establish appropriate governance and make informed decisions about future services.
Managing a PFI or PPP contract?
Whether you want to improve an operational contract, address a commercial issue or prepare for expiry, Local Partnerships can help.
We support individual projects and PFI portfolios, providing additional capacity, independent advice and hands-on delivery. Use the contact form at the bottom of the page to tell us where you are in the contract lifecycle and where you need support.
Contract management and performance
We help authorities understand and apply payment mechanisms, performance regimes and contractual rights.
Our support strengthens supplier oversight, helps authorities apply appropriate deductions and addresses issues before they escalate into disputes.
Governance, capability and resourcing
We independently review governance structures, reporting lines, roles and team capacity.
We help authorities establish effective senior oversight, clarify responsibilities, strengthen internal capability and determine the resources needed to manage operational delivery and expiry.
Expiry readiness and planning
We assess readiness, review contract documentation and help authorities respond to Expiry Health Checks.
Our support includes document audits, stakeholder engagement, governance arrangements, delivery programmes, commercial strategies and detailed expiry plans.
We help authorities manage expiry as three connected stages:
- Operational business as usual
- Contract expiry and asset handback
- Post-expiry transition and future services
Asset condition and handback
We help authorities understand asset condition, lifecycle obligations, contractual standards and handback requirements.
Our work can identify information gaps, secure remedial action and reduce the risk of unsuitable assets or unexpected liabilities being returned to the public sector.
Financial and commercial value
We identify opportunities to protect and recover public value through savings reviews, refinancing, payment-mechanism analysis, deductions, profit-sharing arrangements and other commercial interventions.
We can also support negotiations with project companies, contractors and other parties.
Benchmarking, market testing and insurance
We help authorities understand benchmarking, market-testing and insurance cost-sharing provisions.
Our support can include reviewing submissions, testing compliance with contractual processes and timescales, assessing comparators, verifying calculations and advising on negotiations and next steps.
Future services and decarbonisation
Expiry provides an opportunity to reconsider how assets and services should operate in the future.
We support options appraisal, future delivery models, procurement strategy and service transition. We also help authorities obtain emissions data and identify opportunities to improve energy efficiency, reduce emissions and align future provision with wider net-zero objectives.
Your PFI expiry checklist for 2026
Your PFI expiry checklist for 2026 Preparing for contract expiry is more critical than ever, with over 600 UK-based PFI projects set to expire by 2048. Nearly half of these fall between 2032 and 2037, making early action essential. Here are three priorities to kick off your planning: Can we help? Local Partnerships works alongside the […]
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Managing the expiry of PFI contracts
Today, the Public Accounts Committee published its report on “Managing the expiry of PFI contracts“. The Committee investigated the concerns of the National Audit Office that there are over 700 operational PFI contracts, of which over 200 are due to reach contract expiry by 2030. In his evidence to the Public Accounts Committee, Local Partnerships’ […]
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From both sides: What the Stoke schools issues tell us about PFI
As featured in Partnerships Bulletin Recent news reports on problems at one of the oldest PFI schemes don’t tell the full story, says Neil Okninski, senior director at Local Partnerships A recent article on the BBC website highlighted myriad issues at Stoke-on-Trent City Council’s grouped schools PFI scheme. As the biggest PFI scheme in the […]
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How PFI can build communities – and how we’re spreading best practice
Local Partnerships was pleased to be invited to a meeting of the Housing Private Finance Initiative (PFI) Providers’ Group on Friday 11 September. Held in the new community centre built as part of the Myatts Field Housing PFI contract, it was a great opportunity to hear from a number of PFI providers about the challenges […]
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IPA guidance: preparing for PFI contract expiry
The Infrastructure and Projects Authority (IPA) has published its long-awaited guidance on Private Finance Initiative (PFI) contract expiry. Its primary purpose is to provide practical help on managing the expiry of PFI contracts. Local Partnerships helped to develop the guidance alongside other Government departments and authorities. The guidance captures best practice and learning from expiring and expired PFI contracts. It […]
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Musings on PFI Expiry
PFI expiry has become an inevitable focus in UK infrastructure conversations as Christmas and New Year remain, mercifully, several weeks away. Yet in UK infrastructure, recent conversations are very much along the lines of “out with the old and in with the new”. Whilst it remains to be seen what any new delivery models might […]
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PFI help is here – but you must act quickly
Much focus recently has been placed on preparations for PFI help contract expiry. Approximately 200 operational PFI contracts are due to expire within the next 10 years, so this is an important topic for discussion. The quantity and value of PFI projects have highlighted the need for greater monitoring and input. The public sector will […]
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PFI Expiry: How London boroughs can get ahead
Local Partnerships is pleased to announce the release of the new report, PFI Expiry: How London Boroughs Can Get Ahead, developed in collaboration with Future of London, Devonshires, and Airey Miller. It offers essential guidance for London boroughs facing the challenges of Private Finance Initiative (PFI) contract expiries. It provides clear, actionable strategies designed to […]
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PFI savings achievement
Local Partnerships has helped Barnsley Metropolitan Borough Council complete a PFI refinancing project. Following initial engagement to help the council assess the potential to refinance, Local Partnerships took on the role of delivery partner for the council to manage the process on their behalf, fully utilising our experience and expertise on commercial and financial matters […]
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Saving money, gaining control of PFI
Local Partnerships helped Kirklees Council complete a refinancing of their Excellent Homes for Life social housing PFI project. Following initial engagement to help the Council assess the potential to refinance, Local Partnerships took on the role of delivery partner for the Council to manage the process on their behalf, fully utilising our experience and expertise […]
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Unravelling the PFI Dilemma
Examining the strengths, weaknesses, and the quest for value maximisation in Public Infrastructure Projects The recent Radio 4 documentary, The Great PFI Debt, and other associated articles have brought the PFI model back to the public’s attention. Throughout these pieces is an absence of consistent narrative regarding the perceived strengths and/or weaknesses of PFI: are […]
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Preparation for the expiry of your Private Finance Initiative contracts
Preparation for the expiry of your Private Finance Initiative contract
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Local Partnerships hosted a PFI Expiry webinar on 14 March to provide a practical insight into the key issues to consider when running through a PFI expiry process. The webinar is aimed at contract managers and individuals who have an operational focus.
There are currently over 700 operational PFI contracts, over 400 of these within local government. Each PFI contract has an end point, or expiry date. In the first part of this decade, over 50 operational PFI contracts will reach that expiry date, rising to around 200 contracts over the next 10 years.
Each PFI contract has an end point, or expiry date. In the first part of this decade, over 50 operational PFI contracts will reach that expiry date, rising to around 200 contracts over the next 10 years. The resources required to deal with these contracts will be substantial.
In June 2020, Local Partnerships produced guidance to help the public sector manage the PFI expiry process successfully. In November 2020, we followed this up with a webinar titled “Preparing for the expiry of private finance initiative projects” aimed at strategic decision makers.
Since then, we have:
- appeared as a witness at the Public Accounts Committee as to the preparedness of the public sector for PFI expiry
- provided expert input into the Infrastructure and Projects Authority’s guidance on PFI expiry
- reviewed 11 PFI contracts which are expiring within the next 7 years
- provided targeted expiry support to the Driver and Vehicle Licensing Authority
- undertaken bespoke reviews and support across expiry issues to numerous local authority clients
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