The private finance initiative—overdue reform or policy breakthrough?

In his Autumn Statement for 1992, the Chancellor of the Exchequer, the Rt. Hon. Norman Lamont announced a new initiative to attract more funding from the private sector into public sector projects. Measures have since been taken to implement the Private Finance Initiative (PFI) across all main departments of government as well as in executive agencies and other public bodies. This article examines the origins of the policy, evaluates its significance for public bodies and looks at what the initiative has achieved in practical terms.