ppp header

Russells Hall Hospital: Private Finance Initiative

Written parliamentary question to the Secretary of State for Health

Friday, November 25th, 2016

Rob Marris: To ask the Secretary of State for Health, what recent estimate his Department has made of the real terms amount in (a) interest and (b) service charges and (c) all other costs repayments in unitary charges over the lifetime of all the private finance initiative schemes at Russells Hall Acute Hospital.

Philip Dunne: The latest published information for the overall cost projections for all private finance initiative (PFI) schemes over the lifetime of their contracts, including that at Russells Hall Acute Hospital (part of The Dudley Group NHS Foundation Trust), is available on the Treasury’s website, via:




This information was collected in financial year 2014/15. The data collection in financial year 2015/16 is to be published shortly.


The table shows that for the Russells Hall Acute Hospital the total unitary charge payment (UP) for 2014/15 was estimated as £41.120 million. UPs are subject to meeting agreed performance and quality standards, contractual variations agreed between the parties, and include an annual uprate assumption for inflation of 2.5%.


The Trust’s 2015/16 annual report and accounts show the final outturn UP figure for 2014/15 as £39.267 million. Trusts are now required to account for the PFI scheme as ‘on-balance sheet’ and this means that the substance of the contract is that the trust has a finance lease and payments comprise two elements, a finance lease charge and service charge. The relevant note to the Trust’s 2015/16 accounts show an interest charge for 2014/15 of £5.752 million and a service charge of £21.696 million.