Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Treasury ditches own PFI project

Michael Harrison
Thursday 31 July 1997 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The Treasury yesterday abandoned one of the flagship projects in its Private Finance Initiative - the pounds 200m refurbishment of its own headquarters in Whitehall.

Geoffrey Robinson, the Paymaster General, said negotiations with the Treasury's preferred bidder, Exchequer Partnership, had been terminated because ministers had decided they had other spending priorities and that the project might expose the Government to "significant financial risk".

A spokesman added that there were question marks over the commercial viability of the project, since Exchequer Partnership had not been able to sign up other tenants for the building once it had been refurbished. He also said that ministers had decided other PFI projects, such as schools and hospitals, were a "higher priority than a gleaming new building for Treasury staff".

However, observers expressed surprise that the project had been dropped, suggesting it could only harm the battered image of the PFI.

A spokesman for Exchequer Partnership, a consortium of Stanhope, Bovis and Hambros, said: "Obviously we are disappointed that the project is not going ahead. A lot of work had gone into it."

Comment, page 21

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in