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Almost 40 Labour MPs have raised concerns that the government risks breaking its manifesto pledges by pursuing plans to fund NHS infrastructure through private finance. The government has proposed combining public funds with private investment to construct new Neighbourhood Health Centres accessible to all communities. However, a privately circulated letter addressed to Chancellor Rachel Reeves, reviewed by the BBC, highlights the party’s commitment to ensuring the NHS remains “always publicly owned and publicly funded.”
The MPs, predominantly from the left wing of Labour, emphasized the significance of honoring this promise, especially at a time when public trust in politics is fragile. Their letter urges the government to avoid repeating past errors linked to private financing of public services. They stress that private finance is unlikely to deliver long-term benefits to the public sector and call for the immediate abandonment of any strategies involving private finance for the NHS in upcoming budgets. Cat Eccles, one of the signatories and a former NHS worker for over two decades, shared her experiences with PFI (Private Finance Initiative), highlighting poor building conditions and overwhelming debt burdens that ultimately strain the NHS budget and threaten essential services.
Despite these warnings, not all Labour MPs oppose the approach. Josh Fenton-Glynn, who previously worked with the General Medical Council, expressed more nuanced concerns. He emphasized that his apprehension lies in the specifics of the deal rather than the use of private finance itself, noting that private investment has been commonly employed to construct NHS facilities, with the key issue being whether such contracts provide value for money. The government’s NHS 10 Year Plan acknowledges this complexity, expressing intentions to learn from past experiences with PFI, recognizing that while some projects delivered real benefits, others turned out to be costly mistakes. PFI arrangements typically involve private companies building public infrastructure like hospitals and schools, with governments making payments over long periods, sometimes up to three decades.
A government spokesperson underlined their commitment to shifting healthcare provision away from hospitals and into community settings, in line with the 10 Year Health Plan. They said the administration is reviewing new Public Private Partnership (PPP) models carefully, considering only limited instances where these might offer value for money—such as specific primary care facilities or projects aimed at decarbonizing public buildings. Any future PPP projects will draw on lessons from previous models to avoid repeating former mistakes. Meanwhile, Sir Keir Starmer reaffirmed that the upcoming Budget would prioritize “protecting” and “rebuilding” the NHS, framing it as a Labour Budget grounded in fairness. Highlighting key aims, he stressed safeguarding public services, reducing national debt, and addressing the cost of living as core objectives
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