Scottish Futures Trust outlines £131m savings
July 11 2012
The underspend was detailed in the Trust’s latest annual assessment and will be used to finance the construction of an additional 12 schools as part of the £1.25bn Schools for the Future programme.
Currently the body is engaged in the construction of 600 homes across 12 sites via private capital backed with guarantees of rental payments from the Scottish Government.
The SFT has developed a number of innovative financing and delivery mechanisms for public works, taking advantage of its scale to win preferential rates.
It was intended to act as an alternative to the Public Private Partnership model of financing, which can be expensive in the long term.
Amongst these innovations is the ‘Hub’ method of procurement which seeks to cluster the commissioning of public sector contracts and Tax Incremental Finance, which allows borrowing against future business rates to finance civic improvements.
Sir Angus Grossart, chairman of the Scottish Futures Trust, said: “The Scottish Futures Trust has demonstrated significant progress in times of economic challenge. Central to SFT’s success in delivering £131m of savings and benefits has been the strong strategic alliances it has established with local authorities, health boards and other public bodies across Scotland to collaboratively deliver value-for-money on public sector construction projects."