PFI – Local Partnerships PFI – Local Partnerships

PFI

Helping public authorities manage PFI and PPP contracts, protect public value and prepare for expiry.

The Challenge

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.

Why it matters

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.

FAQs
When should we contact Local Partnerships about our PFI project?

You can contact us at any stage of the contract. We support authorities with operational issues, commercial reviews, governance and resourcing, as part of enhancing your contract management function, as well as planning for contract expiry and the future delivery of services beyond. Starting expiry planning early gives authorities more time to understand asset condition, resolve issues and prepare for handback. We recommend adopting the NISTA described approach

Can Local Partnerships review one PFI contract or a whole portfolio?

Yes. We can support an individual project or review a portfolio of PFI contracts. Our work with Newcastle City Council, for example, covered five PFI projects and helped the council strengthen governance arrangements (at project and programme level), identify operational resource requirements and develop expiry plans and effective contract management tools.

What PFI support can we commission?

Support can be tailored to the project and may include contract and document reviews, governance and resource planning, performance management, support in implementing contractual processes, including benchmarking, insurance or refinancing, and all elements of preparation for expiry, including asset condition assessments, assessing handback options and required activity and future service delivery options.

Can you help us identify savings or recover money owed under a PFI contract?

Yes. We can review the commercial and financial operation of a contract and help authorities identify potential savings, deductions, refinancing gains or other sums due. Recent work has included supporting Essex County Council with a refinancing, which delivered a substantial financial gain and Tower Hamlets Council with the recovery of contractual deductions and profit share through implementing existing contractual terms.

Can you help us prepare for asset handback?

Yes. We can help authorities understand contractual handback requirements, review available information, assess asset condition and develop a plan for resolving issues before expiry. Our work with Liverpool City Council included reviews of fire safety arrangements, lifecycle information, insurance and asset condition.

Can you help us decide what happens after the PFI contract expires?

Yes. Expiry planning should consider both the end of the existing contract and how services and assets will be managed afterwards. We can support options appraisals, future delivery models, procurement strategy and transition planning. Our work on the Barkantine heat network is one example.

Can Local Partnerships work alongside our existing advisers?

Yes. We can work with your internal team and existing legal, technical and financial advisers, providing additional capacity, independent challenge or programme coordination. On the Barkantine project, Local Partnerships led a team that included specialist technical and legal advisers.

Additionally, we work closely with sponsoring Departments (including MHCLG, DfE and DfT) as well as NISTA top ensure support reflects the wider objectives of the respective PFI programme.

Is PFI support funded or do we have to pay?

Some support may be available through nationally funded programmes or helpdesks, subject to current eligibility and availability. Other work is commissioned directly by the authority. Contact us and we can explain the options available for your project.

How can we procure Local Partnerships for PFI support?

Depending on your organisation and circumstances, you may be able to appoint Local Partnerships directly under the vertical arrangements exemption in the Procurement Act 2023. Your procurement or legal team should confirm whether the exemption applies. Further information is available on our procurement exemption page.

Do we need a fully developed specification before contacting you?

No. An initial conversation can help clarify the issue, identify the support required and agree an appropriate scope. It is helpful to provide the project type, contract expiry date, the issue you are facing and details of any previous reviews or expiry health checks.

Can Local Partnerships support live PFI contracts that are not yet approaching expiry?

Yes. We support authorities throughout the contract lifecycle, including commercial reviews, governance and resourcing, benchmarking, insurance matters, refinancing, performance management, implementation of contractual mechanisms and financial recovery activities.

What others have learned
Combined Authorities
Local Government
Public Sector Delivery Body
Private: Protecting Council Assets Ahead of PFI Contract Expiry – Cornwall Fire and Rescue Service

Private: Protecting Council Assets Ahead of PFI Contract Expiry – Cornwall Fire and Rescue Service

Overview As Cornwall Council’s Fire and Rescue Service PFI contract approached expiry, Local Partnerships helped the Council identify asset-condition risks while there was still time to act. Early condition surveys created a robust evidence base for engagement with the contractor, strengthening the Council’s position and enabling repairs and maintenance to be addressed before expiry. The […]

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Local Government
Local Partnerships supports London Borough in setting a new course for the Barkantine Heat Network

Local Partnerships supports London Borough in setting a new course for the Barkantine Heat Network

Case Study: From PFI expiry of a heat network to opportunity How could the expiry of a heat network’s PFI contract be a catalyst to create a flagship low carbon solution in one of the most densely populated areas in the UK? When the London Borough of Tower Hamlets went through the PFI expiry health […]

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Saving money, gaining control of PFI

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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Local Government
PFI savings achievement

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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Local Government
Public Sector Delivery Body
Strengthening governance and resourcing in PFI projects  

Strengthening governance and resourcing in PFI projects  

Effective governance and robust resourcing are critical to PFI project success. Local authorities must prioritise these to ensure strong contract management and performance monitoring. However, financial constraints mean many struggle to recruit and fund qualified officers for key PFI roles, creating risks when paired with weak governance.  A well-managed PFI project needs a dedicated contract […]

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Local Government
Public Sector Delivery Body
Realising the benefits from your PFI/PPP contract

Realising the benefits from your PFI/PPP contract

Good contract management by the public sector can ensure the benefits from PFI/PPP contracts are realised. A key advantage of such contracts is the risk transfer of maintenance and lifecycle replacement. Reducing backlog maintenance is a key deliverable and ensures safe, fit-for-purpose infrastructure. At Local Partnerships we regularly support our clients to help drive value […]

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Managing the expiry of PFI contracts

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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Local Government
Public Sector Delivery Body
From both sides: What the Stoke schools issues tell us about PFI

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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Funded PFI Benchmarking Helpdesk now available to contracting authorities

Funded PFI Benchmarking Helpdesk now available to contracting authorities

Many PFI projects with PFI Benchmarking requirements need support with understanding the process and interpreting the information supplied by the SPV in the Benchmarking Reports, generally submitted every five years. The PFI Benchmarking Helpdesk, is a support service funded by the IPA (Infrastructure and Projects Authority) and aims to provide a Benchmarking advice and support […]

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Local Government
PFI Expiry: How London boroughs can get ahead

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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Local Government
Public Sector Delivery Body
Unravelling the PFI Dilemma

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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Protecting essential public services through a complex PPP contract transition – Isle of Wight

Protecting essential public services through a complex PPP contract transition – Isle of Wight

Overview When Isle of Wight Council faced the early termination of its long-term waste PPP contract, the priority was to protect an essential public service and ensure residents experienced no disruption. With independent specialist support from Local Partnerships, alongside DEFRA and NISTA, the Council successfully transitioned waste services to a new operator within an exceptionally […]

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Who we work with
NISTA logo

NISTA

Liverpool City Council logo

Liverpool City Council

Newcastle City Council: logo

Newcastle City Council:

Newcastle City Council logo

Newcastle City Council

Essex County Council logo

Essex County Council

Tower Hamlets logo

Tower Hamlets

Barnsley Metropolitan Borough Council logo

Barnsley Metropolitan Borough Council

Kirklees Council logo

Kirklees Council

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