Labour’s PFI debt burden

Debt and Labour’s legacy:  The legacy of Labour’s use of the Private Finance Initiative is estimated to cost the Scottish Government a total of £27.7 billion from 2010-11 financial year.

The figure was confirmed in a parliamentary answer from SNP Finance Secretary John Swinney.

The SNP has also released figures on the annual repayments (as estimated in 2009) and the level of repayments to be made by local authorities over the next two years.

SNP MSP Kenneth Gibson has branded the £27.7 billion figure a “disgraceful legacy of Labour” with the repayments being made to banks and finance firms at the same time as both Labour and the Tories propose cuts to Scotland’s budget.

Mr Gibson said:

“This is the disgraceful £27.7 billion legacy that Labour has left Scotland.

“While the SNP is working hard to put new money into building schools, hospitals, homes and delivering public services Labour’s love of debt sees council’s, the NHS and the Government being stripped of funds to make excessive repayments.

“While the SNP is building public services Labour built debts.

“As we face tighter budgets in coming years as a result of Labour’s mismanagement we will be repaying billions to banks and finance firms to meet Labour’s debt legacy.

“All across Scotland’s public sector it is not just Labour’s cuts that are affecting public services but Labour’s legacy as well.

“PFI repayments are now approaching the same level as Scotland’s annual budget.  Labour’s refusal to recognise the problems of PFI and the better deal for taxpayers being delivered by the SNP in Government leaves them in a ludicrous position.”