The Scottish Government has published findings which reveal that the legacy costs to Scotland of Public Private Partnership school building projects in 2008-09 were £244 million.

More than 275 school building projects have been competed using the PPP-PFI model since 2000 and as a result councils and the Scottish Government are tied to annual payments. In 2008-09 these amounted to over £244 million for councils - a £62 million increase on the previous year - which includes £113.6 million of support from the Scottish Government.

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Michael Russell, Cabinet Secretary for Education and Lifelong Learning, said:

"These figures reveal the true burden that the PPP/PFI policy pursed before this Government came to office places on Scotland's education budgets. PPP/PFI payments represented 3.8 per cent of council education spending in 2007/08 and in one local authority area it accounts for over 10 per cent of education spend. Councils are contracted to pay this rising bill each year as a priority above any other education expenditure.

"When we took office these PPP/PFI school projects were either completed or already in the pipeline and it was not an option to unpick these contracts. The cost of PPP/PFI school repayments increased by over 25 per cent in 2008-09 compared to the previous year, demonstrating the ongoing drain on finances that PPP/PFI will continue to have for years to come."

(GK)