Lest we forget, it isn’t just the NHS that is saddled with unsustainable Public Private Partnership (PPP) contracts (there are, in fact, a whole slew of them, PFI being the most obvious). Roads, schools, libraries, prisons - all sorts of public infrastructure was delivered by PFI and its variants and in all cases, the funding departments are struggling to ensure payments. Worse still, it is a very successful export which means other countries around the world have jumped on the PPP bandwagon. You’ll find them all over the world and you’ll find worried budget holders wondering how they’re going to continue the payments and not default. And if they do default, what then?
In some ways, PPPs make a lot of sense. Their purpose is to link longterm service with infrastructure delivery. It means that those delivering the projects can’t just cut and run, leaving the owner to deal with the problems they have left. This was, undeniably, a major problem for some large projects, particularly civil engineering projects.
And Ruth is right, it was the brainchild of the Thatcher government, seen as the epitome of New Public Management, in some quarters, a much-derided theory that private sector business is necessarily better (more efficient, more effective) than the public sector. Nevertheless, (and despite evidence to the contrary e.g. the East Coast Mainline) the assumption among a lot of politicians is that public sector = bad/ private sector = good.
But philosophical perspectives put to one side, the real disaster came when PPPs were leapt on as a solution to ensuring a lot of much-needed infrastructure expenditure appeared off balance sheet. Although it was the brainchild of the Tories, Brown was the one who jumped on the off balance sheet aspect as a political expediency, and so Corbyn is right in that sense – the mess is partially Labour’s fault.
As with all things, PPPs, and the role of Labour in creating the problems faced by the NHS and other public sector organizations is more nuanced than, at first, it might appear.