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Chancellor George Osborne set to unveil PFI reforms

A "faster and more transparent" system to lever in private funding for public infrastructure projects is set to be unveiled by George Osborne on Wednesday, Government sources have indicated.

The Chancellor is expected to use his Autumn Statement to detail reforms to the heavily criticised Private Finance Initiative (PFI) aimed at reducing taxpayer costs and risks.

Chancellor George Osborne will make his Autumn Statement tomorrow

Among the changes will be limits on the types of services such as maintenance included in contracts and more flexible terms allowing the state to opt out of others later.

Existing arrangements have been criticised as too generous to private contractors, with one hospital reported to have been charged #333 by a PFI firm to change a lightbulb.