Are we set to see more public-private partnerships and Britain building again?
With the government clear in its intentions to increase private sector investment in the UK by creating an attractive and less risky development environment, while supporting local authorities far and wide with achieving their growth ambitions, the topic of public-private partnerships (PPPs) has come to the fore.
Our latest edition of Pagabo Live focused on the opportunity to increase partnerships of this nature, by exploring the history and learnings from past Public Finance Initiative (PFI) policies, as well as principles to consider incorporating within future PPP models – which may be on the rise.
Led by our regular host Tom Snee of Cartwright Communications, the experts in the hotseat included Sonia McRobb and Jamie Marsh from Rider Levett Bucknall, alongside James Meakin of Knight Frank.
Looking back on PFI to shape the future of PPPs
Since first introduced in 1992, PFI policies have been used by UK governments in an attempt to fund major infrastructure projects through public and private sector collaboration. With limited take-up initially, it was in 1997 that a change in government and reduced borrowing led to greater interest in PFI and more partnerships.
Peaking in the mid-2000s before dipping after the financial crisis in 2008, there are still roughly 1000 PFI projects underway at present despite PFI being formally cancelled in 2018. Different PPP models have been developed since, such as the Mutual Investment Model (MIM) and Local Improvement Finance Trusts (LIFT), which are capable of bringing the same project benefits – on time delivery and spend accuracy.
With PFI projects still underway and continued learning an opportunity for everyone, the future of PPPs is yet to be defined – but there are signs of a resurgence in the faith that the fundamental concept can work.
The panel suggested that the resurgence has been intensified by the national growth ambitions being pursued by the new Labour government, and its big plans for infrastructure, increasing the need for solutions and action.
What does success look like?
The government is currently developing a 10-year infrastructure strategy, acting as another reason that new long-term public-private partnerships are likely to be needed in the near future. Our panel also discussed new development corporations being influential in the creation of PPPs, along with ongoing devolution and the prominence of combined authorities.
As we stand, the perception of PPPs is mixed. Globally, the UK was an early adopter of these procurement models – paying the price for this in some ways and reaping the benefits in others. From smooth project delivery to social value generated, there has been some compelling case studies for continued development of PPPs. However, project conflicts and lack of collaboration can sometimes be the undesirable experience.
When asked what makes a successful PPP, our panel highlighted several things – for example, cost saving solutions, availability of information, maintaining communication, nurturing understanding and transparency. For those currently involved in PFI projects, the instructions were clear – think about handover as early as possible, understand your contract and obligations, prioritise relationship management, and seek advice from professionals with experience on the process if needed.
There is belief
Our audience was asked during the live stream whether or not they believe PPPs can get Britain building, with 64% voting yes and only 9% saying no. The remaining 27% were unsure. If convinced of their potential, this proves to some extent that there is significant confidence and belief in the potential of PPPs.
Do you believe? Do you not believe, or are you undecided? Hear from our latest panel of experts to decide for yourself by watching Pagabo Live on-demand here.
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Pagabo Live now has CPD accreditation for its knowledge offering. If you are tuned in live to our sessions, you will receive a link via email afterwards to claim your CPD credit.
Pagabo Live on the road
Our next Pagabo Live webinar will take place in June. As for May, the Pagabo Live Pavillion at UKREiiF 2025 will be the destination for your monthly fix of public sector knowledge.
If you are attending the annual event in Leeds, you can find us in Pavilion Square for three days of insightful panel discussions, roundtables, workshops, and much more featuring industry experts and special guests. View our full UKREiiF content schedule here.
For those not attending UKREiiF, all of our sessions will be recorded and shared via our Pagabo Live monthly newsletter, alongside further insights and updates.
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