Ministers in Scotland have outlined plans for an initiative that will release up to £150m of funding per year for investment in infrastructure like new schools, hospitals and transport projects.

The Scottish Futures Trust will be supported by a new public sector company and will aim to learn lessons from previous ‘wasteful’ private finance initiatives (PFI) and ‘capture the bulk buying power of infrastructure investment in Scotland’.

Ministers said the trust, which will be formed in the summer, would help deliver better value for money through more effective planning, procurement and delivery.

Other aims of the initiative include:

• developing an asset-based investment fund to support community regeneration
• forming at least two ‘community hubs’, including primary and community care facilities
• creating a consistent infrastructure investment plan based on ten-year strategies
• supporting the Scottish Funding Council in developing delivery and funding schemes for higher and further education
• helping the public sector produce national programmes for the delivery and funding of schools, housing, and flood prevention investment
• attracting more private sector investment into housing

John Kay, visiting professor of economics at London School of Economics and a member of Scotland’s Council of Economic Advisers, said: ‘PFI is well past its sell-by date. The trust can achieve its three objectives of cheaper finance, better project management and the operation of infrastructure projects for the benefit of the people of Scotland.’

Taking forward the Scottish Futures Trust, www.scotland.gov.uk

by Barry McCarthy
barry@newstartmag.co.uk