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Transform Stoke Schools Ltd (TSSL), the company responsible for managing the largest Private Finance Initiative (PFI) contract for schools in England, is entering liquidation. This development raises serious concerns about the future of 88 schools in Stoke-on-Trent, as there is a risk that ongoing building projects and necessary repairs may remain incomplete. Over a 25-year period, schools in the city relied on TSSL to maintain their facilities, with the contract officially coming to an end on 25 October.
According to a letter obtained by the BBC, the chief executive of Stoke-on-Trent City Council informed schools that TSSL is going through Creditor Voluntary Liquidation, a process in which the company’s directors are actively working to close down the business. The council has emphasized that ensuring children have access to safe, high-standard school buildings is its highest priority amid the uncertainty. Although the contract expired recently, not all planned repairs were finished, and the council has been collaborating with the primary contractor to try to keep building work moving forward.
The recent communication to schools also revealed that some suppliers might not have been paid fully, and certain repairs remain incomplete or not up to satisfactory standards. Additionally, warranties for some of the work completed have yet to be secured. Earlier this year, concerns emerged that TSSL might abandon its responsibilities once the contract ended, leaving schools burdened with significant repair costs. This unease was compounded by reports that nearly half of the schools had withheld payments due to unresolved disputes about the quality and extent of the work carried out.
Labour MP Gareth Snell expressed his disappointment at TSSL’s withdrawal, stating, “It is extremely disappointing but entirely unsurprising that TSSL is walking away from the commitments they made.” He also highlighted the need for the city council to provide clear answers regarding contract oversight and to address important questions about when outstanding work will be completed, funding arrangements, and how the quality of school premises will be ensured moving forward. Stoke-on-Trent’s PFI contract is noteworthy because it is the first among many similar agreements across England scheduled to conclude in the coming years. With this in mind, the council has assured residents that it anticipated the possibility of TSSL’s liquidation and has reserved £3.5 million to assist in managing the situation. It plans to work closely with schools to compile a detailed list of unfinished work and pledged to deliver safe and quality learning environments for children. A comprehensive review of the PFI contract is also expected later.
This situation in Stoke-on-Trent could serve as an important case study for other regions facing the end of their PFI contracts. The National Audit Office warned in 2020 that without thorough preparation for contract expirations, critical public infrastructure such as schools and hospitals might not be returned in suitable condition, potentially leading to increased costs for taxpayers and service users. The BBC has reached out to TSSL’s directors seeking comment on these matters, but no response has been reported thus far
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