Get the latest hospitality news and inspiration straight to your inbox. Subscribe to our newsletter.

George Osborne’s PF2 initiative marks end for long-term catering tie-ins

Written by:
George Osborne’s PF2 initiative marks end for long-term catering tie-ins
Written by:

Chancellor George Osborne announced proposed changes to the Private Finance Initiative (PFI) that will see an end to long-term catering and soft facilities management (FM) tie-ins.

The revamped version of PFI, known as PF2, will be announced in the autumn statement tomorrow (5 December) and aims to ensure that taxpayers receive a share of the financial benefits under a new system that promises to be more transparent.

The original scheme, launched in 1992, was designed to attract private investment to public sector projects. After development of the infrastructure, private sector companies would operate the facilities, such as catering, cleaning and security. These deals would often involve lengthy tie-ins, of 25 years or longer.

But the Chancellor’s PF2 scheme would see an end to long term service contracts run by the contractor or its subsidiaries. The Government will instead be able to retender service contracts for new providers in order to get a better deal.

School PFI contracts ‘should exclude meals’ >>

Hospital caterers slam PFI scheme >>

By Janie Manzoori-Stamford

E-mail your comments to Janie Manzoori-Stamford here.

TabletalkIf you have something to say on this story or anything else join the debate at Table Talk – Caterer’s new networking forum. Go to jobs

Looking for a new job? Find your next job here with jobs

Blogs on

Catch up with more news and gossip on all Caterer’s blogs


For the latest hospitality news, sign up for our E-newsletters


Start the discussion

Sign in to comment or register new account

Start the working day with

The Caterer’s free breakfast briefing email

Sign up now for:

  • The latest exclusives from across the industry
  • Innovations, new openings, business news and practical advice
  • The latest product innovations and supplier offers
Sign up for free