THE public finance initiative (PFI) was brought in under John Major’s government between 1992 and 1997 but was considerably expanded after that point under Tony Blair and his then-chancellor Gordon Brown.

We know that was a long time ago but the reason we are talking about it now is because for the first time in 14 years, Labour are back as the UK Government and we’ve all heard how much inspiration they are planning to take from their New Labour predecessors, especially when it comes to privatisation.

Economics expert Richard Murphy explained in the run-up to the General Election that the SNP government at Holyrood have been “crippled” by the level of debt incurred through the PFI used under Labour and, with fears it could make a return, it is vital we bring it into the limelight.

Six years ago, then-chancellor Philip Hammond scrapped PFI contracts amid criticism they were not value for money.

But there are major fears that Chancellor Rachel Reeves (below) is looking at bringing back some sort of updated PFI.

Earlier this month, she launched a £7.3 billion national wealth fund as part of a drive to attract billions of private sector cash for big infrastructure projects.

The NWF is designed to help projects such as ports attract a mix of investment, aiming for roughly £3 of private funds for every £1 of taxpayer cash.

READ MORE: Rachel Reeves eyes Scottish oil and gas for new national wealth fund

It was also reported just prior to the election that more than a dozen private sector lobbyists and consultants had been embedded in Labour’s shadow cabinet teams.

We’ve also heard multiple times about how Health Secretary Wes Streeting is planning to use the private sector to cut the NHS care backlog.

He said the Labour government would use the private sector for “as long as it takes” to get people seen faster, but added his longer-term ambition was for nobody to be forced to pay and for the NHS not to rely on private care at all.

One of the reasons PFI has come back into people’s minds is that Labour have brought back Blair’s pro-PFI health secretary Alan Milburn to advise Streeting.

Milburn (above) drove through the PFI deals for hospitals, which contracted out the design and operation of the buildings to the private sector through long-term contracts. 

Murphy said if Labour do end up turning to PFI again, it would be “madness”.

He said: “It is straightforward financial folly. What else can one say about something which has clearly not worked and yet which you’re thinking about again?

“So I live in fear of this because it’s exactly what a Labour government that we know is all in favour of public-private partnerships and is all in favour - as we’ve seen from the attitude of Wes Streeting - within the NHS in bringing private sector operators in, might do.

“It’s the last thing we all need.”