The Association of Infrastructure Investors in Public Private Partnerships (AIIP) called on chancellor Rachel Reeves to update rules in the forthcoming Autumn Budget to allow social infrastructure projects, including new hospital and acute care schemes, to leverage in private finance for the first time since 2018.

Lord Hutton, chair of the Association of Infrastructure Investors said: ‘We urgently need to inject the NHS with billions to repair our crumbling estate, and to build new capacity to meet the health challenges of the next 20 years. New partnerships with private investors could unlock billions to cut waiting lists, reduce serious clinical incidents and improve accountability.

‘PPPs, when structured effectively, bring private sector expertise, efficiency, innovation and capital to bear on complex public challenges. The model also ensures that critical infrastructure is maintained and managed in the long-term interests of the nation, insulating it from the short-termism of budget cuts.'

Ministers announced plans in July as part of the 10-Year Health Plan to allow PPPs to be developed for neighbourhood health centres, but have not said they will do the same for rebuilding hospitals.

New analysis of official Treasury returns shows 90 hospitals were built under PFI in less than a decade, with the capital investment totalling over £10bn. By contrast, the New Hospital Programme, announced by the previous Government in 2020, has been beset by delays with some hospitals planned not to start construction until 2039. 

The AIIP report outlines 35 recommendations across seven areas for an improved PPP model based on lessons from previous experiences.