Experts throw doubt on financing of Scottish public projects

Experts have called for more clarification over how Scotland’s new policy for building major public projects will work.

Organisations and councils have thrown doubt on the Scottish government’s claims that its Scottish Futures Trust will cost less than PFI deals.

The government is to announce more details on the Trust this week before setting it up shortly to fund public projects.

It wants the programme to be a not-for-profit system providing funds for major projects through low-interest loans, possibly funded by issuing local authority bonds.

But experts have told the Scottish Parliament’s finance committee that local authority bond financing will not reduce costs, reported the BBC.

McGrigors law partner Michael Watson told the committee he was unsure if the bonds would allow councils to work together to raise cash for a single, large-scale project.

Public sector union Unison said ministers had failed to provide evidence on how the trust would save money compared to PFI.

And Glasgow City Council has queried “how the Scottish Futures Trust will actually work”, the BBC reported.