Taxpayers will bear brunt of higher PFI costs - The Observer 23rd March 2008

Prices of public-private building projects such as hospitals are also being forced up by banks' reluctance to lend. Taxpayers face higher bills for new hospitals, schools and roads built under the controversial private finance initiative (PFI). Banks' reluctance to lend money is forcing up borrowing costs despite the best efforts of central bankers to reduce interest rates. As a result, the price of the UK's much needed infrastructure improvement is escalating sharply.

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