Private finance essential to provide stimulus to post-Covid-19 rebuilding

The Covid-19 pandemic has resulted in Britain’s biggest debt in over 60 years. However, the country also needs to invest over £600 billion in infrastructure to stimulate economic recovery as well as meet its target of net zero greenhouse gas emissions by 2050. While the UK government’s private finance initiative model for procuring public infrastructure has fallen out of favour, private investment can deliver major public benefits if properly managed. This paper highlights both good and bad outcomes of private finance initiatives around the world, and suggests how they can best be used to support the UK government’s long-term aspirations to ‘build back better’ and meet its climate targets. The key is to focus on specific projects and to structure deals to provide quality, value for money and longevity.