BSF to trial new funding methods

New forms of funding to beat the credit crunch will be trialled by the £45bn Building Schools for the Future (BSF) programme.

Solutions include shorter contract terms, milestone capital payments, optimum risk transfer and less equity.

A spokesperson for Partnerships for Schools said: "As with the management of any large-scale infrastructure project, it is prudent keep a close watching brief on economic conditions and we are always looking for ways to ensure best value for taxpayers' money.

"It is true that we are looking at ways in which PFI schemes are financed and are thinking about more flexible sources of debt finance, shorter-term funding and refinancing during the process. This is part and parcel of the responsible programme management carried out by Partnerships for Schools throughout the economic cycle. It is not specifically related to the 'credit crunch'. We will continue to monitor market activity carefully."