A group of Members of Parliament (MPs) is urging Chancellor Rachel Reeves to abandon plans to reintroduce private debt agreements for the NHS. Demonstrators confronted MPs outside the Labour Party Conference, insisting on upholding the party’s 2024 election promise to maintain the NHS as publicly owned and funded. Private finance arrangements aim to keep government debt off the balance sheet but can burden NHS trusts with high interest payments for extended periods.
The protest occurred before Rachel Reeves’ keynote address at the Liverpool conference. The Chancellor will make a final decision in her Autumn Budget on November 26 regarding the potential use of a private finance scheme to finance numerous new medical facilities in England.
Cat Hobbs, the founder of We Own It, which coordinated the protest, criticized the potential move as a betrayal of the Labour manifesto and the public’s trust in safeguarding the NHS. The use of public-private partnerships (PPPs) and private finance initiatives (PFI) to construct hospitals, initiated during the Conservative era and expanded under Tony Blair’s government, has led NHS trusts to borrow from private consortiums at significantly higher interest rates than government borrowing.
For instance, Barts Health NHS Trust in London faces a 43-year PFI contract where it is expected to repay over £7 billion for assets worth £1.1 billion. The government is exploring a PPP model to align with Rachel Reeves’ fiscal goals, aiming to reduce public debt as a share of the economy in five years.
Activists brandished signs questioning MPs’ commitment to the NHS’s public ownership and funding, prompting 27 Labour MPs to reaffirm their support for the party’s stance. The debate around PPPs continues, with Scotland and Wales pursuing their unique partnership models to fund infrastructure projects. Labour MPs, including Bell Ribeiro-Addy and Ian Byrne, emphasize the importance of protecting the NHS from further private sector involvement.
Darren Jones, the chief secretary to the Treasury, views PPPs as a means to expedite healthcare infrastructure development, supporting the government’s plan to establish 300 neighborhood health centers in England. These centers are central to the Ten Year Health Plan, aiming to provide localized healthcare services and alleviate pressure on hospitals.
