The Private Finance Initiative (PFI) was announced in 1992 by the Chancellor of the Exchequer, Norman Lamont, in his 1992 Autumn Statement. The objective was to bring private sector skills into the provision of public services and, in particular, provide a way to make up for significant under-investment by the Government during earlier years, using a cost-effective, efficient outcome with delay and cost overrun risk transferred to the private sector.
Under PFI, the building and operation of assets in health, education, transport and other sectors are undertaken.