
SNP: Labour costing households in South Lanarkshire £165m
A spokesperson for South Lanarkshire Council defended the use of the funding model, saying it had allowed the authority to rebuild its entire school estate.
Labour claimed the SNP were trying to deflect from their own record of local authority funding cuts.
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PFI contracts were introduced by John Major's Conservative government in the 1990s to fund infrastructure projects with private capital. The approach was later expanded by Tony Blair's Labour government and rebranded as PPP.
Though hundreds of schools, hospitals and roads were built under these schemes, they have been criticised for long-term repayment costs far exceeding the original construction value.
Since 2005, the Scottish Government has replaced PFI with non-profit distributing (NPD) and hub models, which aim to limit private profits by removing dividend payments.
These alternatives have funded £3.3bn in infrastructure projects.
The long-term financial burden of PFI was highlighted in a report by Audit Scotland last year, which found NHS Scotland is still less than halfway through repaying its PFI debts — more than 25 years after contracts were signed.
BBC Scotland has also reported that at least 11 Scottish PFI schemes may require expensive buyouts at the end of their terms, including Edinburgh Royal Infirmary and University Hospital Wishaw.
The council said PFI had allowed them rebuild every school in the regionSince Labour took control of South Lanarkshire Council in 2022, the local authority has paid — or is projected to pay — £165.29m in PFI and PPP repayments over four years: £39.81m in 2022/23, £40.80m in 2023/24, £41.82m in 2024/25, and £42.86m in this financial year.
SNP MSP Collette Stevenson said the figures exposed the 'true price of Labour failure' and claimed the increasing costs were the result of 'decades-old policy decisions' that continue to drain local budgets.
'Labour's PFI and PPP failure is costing households across South Lanarkshire more and more every year — hitting this community with a bill of almost £43m this year,' she said.
'In government, the SNP has delivered for this community; scrapping PFI and PPP contracts and providing record funding for local authorities — much of which goes towards mitigating the impact of Labour decisions like PFI.'
She added: 'Whether it is decades-old policy decisions like PFI, their decision to cut the Winter Fuel Payment or the council's decision to slash school bus provision, Labour in power is costing households dearly.
'Scotland has always been an afterthought to the Labour Party — but the SNP under John Swinney's leadership will always stand up for Scotland and be on the side of communities like South Lanarkshire.'
A council spokesperson said: 'The council has utilised different financing options at different times in order to rebuild every single secondary and primary school in the area.
"The result is a fantastic learning environment for every pupil in the area — and what many consider to be the best schools estate in the United Kingdom — including 127 new primary schools that were funded directly by the council.
'Part of the due diligence process undertaken for the secondary school contract was a comparison exercise signed off by Audit Scotland and the Scottish Government.
'In terms of secondary schools, funding is provided by the Scottish Government towards the costs of these contracts.'
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Scottish Labour also hit back, with local government spokesperson Mark Griffin accusing the SNP of trying to 'deflect' from its own record.
'The SNP is the architect of austerity in Scotland's councils and this desperate attempt at deflection will not hide that,' he said.
'The SNP has raided over £480m from core South Lanarkshire Council budgets over recent years, undermining vital local services.
'Despite the SNP's relentless campaign of cuts, the Labour council has protected frontline services and delivered the lowest Council Tax increase in the country for local families.'
The row comes as the Hamilton, Larkhall and Stonehouse by-election enters it final week.
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But for decades, successive governments, including the last one, have failed to deliver that. That failure has undermined faith and trust in democracy itself. It is now time to actually deliver what the public want. Under new leadership, the Conservative Party has recently brought forward a number of serious, credible and detailed plans to tackle immigration - all of which Labour voted against in Parliament in the past few weeks. While homes go unbuilt, schools burst at the seams, and A&Es overflow, Labour's answer is to import more people and deny there's even a problem. The Home Secretary admitted Labour's plans will only bring down net migration by microscopic 50,000 a year - nowhere near enough of a reduction. It is no surprise the Labour Government is failing to take action – Starmer once absurdly claimed immigration puts no strain on public services. Tell that to the families in waiting for a doctor's appointment, to the councillors facing impossible housing targets, or to the water companies now forced to warn that we may not have enough to go round. The government's target of building 300,000 homes per year would only cover net migration at 170,000 per year. Instead, Labour's housebuilding target could result in five out of seven new homes going to migrants. What about the British people who want to get on the housing ladder? Naturally, more people means more demand for water. Every person who arrives needs showers, sinks, sanitation. The more pressure we put on the network, the faster it fails, and the harder it becomes to plan or build for the future. And Labour's solution has not been to tackle the influx but rather to crush any local objections and build two giant reservoirs for 10 and 15 years' time. When the Conservatives recently brought forward a plan to slash immigration Labour torpedoed it using their huge Parliamentary majority. We put forward measures to implement automatic deportations of foreign criminals and illegal migrants; to end the human rights madness that stops us controlling our borders; and to create a binding annual cap on migration which is much, much lower than the numbers we have seen in recent years. Water doesn't lie. It's a basic test of whether a country can support the people in it, and Britain is failing that test because Labour refuses to confront reality. The only serious solution is to tackle immigration head-on. We cannot keep adding the pressure and pretending the system will hold. We cannot build our way out of a problem we refuse to name. Until we slash migration numbers, the shortages will only get worse.