Local Authority Funding
Latest developments
- July 2008 - South Tyne and Wear Waste Management Partnership & Staffordshire County Council have been awarded PFI credits for their local waste projects.
- December 2007 - WIDP guidance under consultation: prudential borrowing, output specification and payment mechanism
- December 2007 - New release: nine Round 3 expressions of interest have been assessed
- October 2007 - Defra gives further £2 billion of funding (see below)
Introduction to waste PFI
Defra was given a further £2 billion of funding through PFI credits in the 2007 Comprehensive Spending Review which will be available to help local authorities invest in sustainable waste management options. The PFI credits will rise from £280 million in 2007/08 to:
PFI is one of the main mechanisms through which local authorities (LAs) can procure assets in a value for money way in partnership with the private sector. It is a procurement methodology for asset-based services. Long term fixed price contracts are entered into with private sector contractors to deliver services to specified performance standards.
Waste PFI schemes will help the UK meet EU Landfill Directive diversion and recycling targets. They also encourage greater partnership working between authorities resulting in efficiency gains, more integrated waste management solutions and the benefits of economies of scale that flow from this and a more strategic approach to planning and procurement.
In the last couple of years, there has been an increase in the number of projects submitted to Defra for consideration for PFI credit support. With that increase has come an improvement in the environmental solutions being proposed. Most of the recently submitted projects have proposed long-term recycling and composting solutions in line with national targets in the Waste Strategy for England 2007; diversion from landfill in excess of EU targets and ambitious waste minimisation proposals that aim to reduce waste growth to 0% per annum in the long term.
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Page last modified:
28 July 2008
Page published: 5 February 2003