Six other NHS trusts face joining South London Healthcare in "administration" as they have taken on projects viewed by ministers as "unsustainable", it has emerged.
South London Healthcare NHS Trust will be the first in the country to be put under the control of a special administrator tasked with securing its finances.
The schemes saw private firms building hospitals, leaving the NHS with an annual fee to pay over around 30 years.
The total value of the NHS buildings built by Labour under the scheme is £11.4bn. But the bill, which will also include fees for maintenance, cleaning and portering, will come to more than £70bn on current projections and will not be paid off until 2049. ( AtW's comment: somebody show Mitch this as it shows the difference between "investment" and "lending" )
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Some trusts are spending up to a fifth of their budget servicing the mortgages.
Across the public sector, taxpayers are committed to paying £229bn for hospitals, schools, roads and other projects with a capital value of £56bn.
But former Prime Minister Tony Blair told Sky News the contribution PFI had made to rebuilding the country's infrastructure was "immense".
"PFI has been copied around the world," he said. "I am sure, as with any system, you will get a situation when sometimes it doesn't work or people will get into difficulty as they do in the non PFI situations, but if you look at PFI overall and what it delivered in terms of hospitals, schools and renovations to the infrastructure of the country it has been immense."
The Tories called on Labour to "apologise for leaving hospitals in a debt crisis". (AtW's comment: oh FFS, apologise? Tories are in Govt - put in jail people who signed such tulipy contracts starting with Bliar - THEN apologise for not doing it ealier)
South London Healthcare NHS Trust, which runs three hospitals, has been criticised over standards of care after being saddled with large debts from PFI deals.
Despite efforts to improve its financial performance, it is still thought to be on track to lose between £30 and £75 million a year for the next five years.
It was formally warned last night that it would be the first NHS body to be taken over by Whitehall-appointed administrators under the “unsustainable providers’ regime”.
Source: Blair defends PFI as NHS trusts face bankruptcy - Telegraph
No wonder taxes are so high: £11.6 bln total value and £70 bln to repay, enough to build like 10 aircaft carrier groups and be an equal partner with USA.
South London Healthcare NHS Trust will be the first in the country to be put under the control of a special administrator tasked with securing its finances.
The schemes saw private firms building hospitals, leaving the NHS with an annual fee to pay over around 30 years.
The total value of the NHS buildings built by Labour under the scheme is £11.4bn. But the bill, which will also include fees for maintenance, cleaning and portering, will come to more than £70bn on current projections and will not be paid off until 2049. ( AtW's comment: somebody show Mitch this as it shows the difference between "investment" and "lending" )
)Some trusts are spending up to a fifth of their budget servicing the mortgages.
Across the public sector, taxpayers are committed to paying £229bn for hospitals, schools, roads and other projects with a capital value of £56bn.
But former Prime Minister Tony Blair told Sky News the contribution PFI had made to rebuilding the country's infrastructure was "immense".
"PFI has been copied around the world," he said. "I am sure, as with any system, you will get a situation when sometimes it doesn't work or people will get into difficulty as they do in the non PFI situations, but if you look at PFI overall and what it delivered in terms of hospitals, schools and renovations to the infrastructure of the country it has been immense."
The Tories called on Labour to "apologise for leaving hospitals in a debt crisis". (AtW's comment: oh FFS, apologise? Tories are in Govt - put in jail people who signed such tulipy contracts starting with Bliar - THEN apologise for not doing it ealier)
South London Healthcare NHS Trust, which runs three hospitals, has been criticised over standards of care after being saddled with large debts from PFI deals.
Despite efforts to improve its financial performance, it is still thought to be on track to lose between £30 and £75 million a year for the next five years.
It was formally warned last night that it would be the first NHS body to be taken over by Whitehall-appointed administrators under the “unsustainable providers’ regime”.
Source: Blair defends PFI as NHS trusts face bankruptcy - Telegraph
No wonder taxes are so high: £11.6 bln total value and £70 bln to repay, enough to build like 10 aircaft carrier groups and be an equal partner with USA.
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