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Page last updated at 08:58 GMT, Tuesday, 4 December 2012

PFI: Will taxpayers receive fair share?

The government is to change the way that Private Finance Initiatives (PFI) operate, so that taxpayers share in the profits made by the schemes.

The private companies which are contracted to build and maintain schools, hospitals and other large scale projects will have to let the public sector appoint directors to their boards, and take a share of up to 49% in future deals.

The BBC's business editor Robert Peston explained to Today presenter Sarah Montague: "One of the criticisms levelled at the PFI is that private companies have made excessive profits from the deals."

"George Osborne feels that if there are excess profits to be made... then tax payer should at least get a share in these profits," he added.

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