Does the UK Local Finance Improvement Trust (Lift) Initiative Improve Risk Management in Public-Private Procurement?

Fitzsimmons D., Matthias Beck, Brown S

Research output: Chapter in Book/Report/Conference proceedingChapter (peer-reviewed)

Abstract

The UK government introduced the Private Finance Initiative (PFI) and, latterly, the Local Improvement Finance Trust (LIFT) in an attempt to improve public service provision. As a variant of PFI, LIFT seeks to create a framework for the effective provision of primary care facilities. Like conventional PFI procurement, LIFT projects involve long-term contracts, complex multi-party interactions and thus create various risks to public sector clients. This paper investigates the advantages and disadvantages of LIFT with a focus on how this approach facilitates or impedes risk management from the public sector client perspective. Our paper concludes that LIFT has a potential for creating additional problems, including the further reduction of public sector control, conflicts of interest, the inappropriate use of enabling funds, and higher than market rental costs affecting the uptake of space in the buildings by local health care providers. However, there is also evidence that LIFT has facilitated new investment and that Primary Care Trusts (PCTs) have themselves started addressing some of the weaknesses of this procurement format through the bundling of projects and other forms of regional co-operation.
Original languageEnglish
Title of host publicationUnderstanding Risk
Subtitle of host publicationContributions from the Journal of Risk and Governance
EditorsMatthias Beck
Place of PublicationNew York
PublisherNova Science Publishers
Pages187-206
ISBN (Print)978-1-62618-686-6
Publication statusPublished - 2013

Bibliographical note

This is an updated and revised version of an article originally published in the Journal of Risk and Goverance

Keywords

  • Risk management
  • Financial risk
  • Corporate governance

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  • Cite this

    D., F., Beck, M., & S, B. (2013). Does the UK Local Finance Improvement Trust (Lift) Initiative Improve Risk Management in Public-Private Procurement? In M. Beck (Ed.), Understanding Risk: Contributions from the Journal of Risk and Governance (pp. 187-206). Nova Science Publishers.