Sean Keyes welcomes signs that Chancellor Rachel Reeves is examining a return to Private Finance Initiatives to fund major building projects, but warns that neither government nor industry has a perfect track record on delivery.
Chancellor Rachel Reeves is reported to be examining a return to Blair-style Private Finance Initiatives to accelerate the delivery of new towns and major infrastructure. According to The Daily Telegraph, the Treasury has been sounding out investors on how PFI-style mechanisms could unlock a national building boom, in what would mark a significant shift in Treasury thinking on the use of private capital.
The move comes against a backdrop of stalling housing delivery. Around 201,000 new homes were completed in the year to June 2025, well below the 300,000 a year the Government has said is needed to meet its 1.5 million homes target this parliament. Independent forecasters now expect completions to fall hundreds of thousands of homes short of that target by 2028/29, and the Construction Industry Training Board is warning of a 250,000-worker shortage by 2028.
Reacting to the reports, Sean Keyes, CEO of Sutcliffe Civil and Structural Engineering, said:
“If this gets the construction industry moving, then I’m all in favour.
“My only word of caution is that neither side has a perfect track record. Governments are not always great at managing PFI-style contracts, whilst some private companies have been known to maximise profit and minimise quality.
“The answer is not ideology. The answer is delivering projects well, building the homes and infrastructure we need, and ensuring taxpayers get value for money.”
Sutcliffe is involved in the design of around 5,000 homes a year and holds significant framework appointments across major UK housing and construction programmes.
The Liverpool-headquartered consultancy, which is building on 40 years in business, has expanded into Manchester and is currently delivering projects across the housing, Ministry of Justice, Ministry of Defence, healthcare and education sectors.
Sean added: “Whatever the funding model, the test is the same. Are we delivering buildings and infrastructure that communities actually need, and are we doing it to a standard the public can be proud of? To my mind, that’s the only conversation worth having.”