Labour Brighton conference: John McDonnell to end PFI contracts as it’s a ‘waste of taxpayer money’

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The shadow chancellor, John McDonnell has said Monday, at Labour’s Brighton conference that they plan to end Private Finance Initiative (PFI), as he called it a “scandal.”

However, it is believed that McDonnell was to say in his speech, that contracts whereby taxpayers are being ripped off with unfair profits and huge charges would be cancelled.

He was to say, “We’ll bring existing PFI contracts back in-house

“We’ll bring them back.”

The former Conservative prime minister, Sir john Major set up the PFI scheme which was also backed by Labour’s former prime minister, Tony Blair and Gordon Brown, this brings an end to the Blair and Brown era.

Deals that have huge profits of up to 30 per cent will be targeted, he said: “The Government could intervene immediately to ensure that companies in tax havens can’t own shares in PFI companies, and their profits aren’t hidden from HMRC.

“We’ll put an end to this scandal and reduce the cost to the taxpayers.”

The CBI responded to McDonnell’s speech, at the Labour party conference.

Carolyn Fairbairn, CBI director-general, said: “The shadow chancellor’s vision of massive state intervention is the wrong plan at the wrong time. It raises a warning flag over the British economy at a critical time for our country’s future.  

“Business and politicians share a determination to create a fairer society in which everyone benefits. But the trickle of stalled investments caused by Brexit uncertainty could become a flood if these plans were to become reality.

“This would threaten the living standards of the very people that need help, from pensioners to students.

“Forced nationalisation of large parts of British industry will send investors running for the hills, and puts misplaced nostalgia ahead of progressive vision.  

“Where Labour has engaged with business – from Brexit and skills to infrastructure and innovation – solutions have been found to deliver an economy that is both more prosperous and fairer.

“The CBI looks forward to urgent discussion with the Labour leadership to find better solutions to the shared challenges we face.”