Alan Jarvie
Director, Infrastructure, Bristol, UK contact form+44 1454 66 2036
The condition of a school building speaks volumes about the value we place on education. As the UK faces mounting pressure to modernise its ageing school estate, the role of private finance is once again under the spotlight.
The UK’s education estate has long relied on private finance to bridge funding gaps in school rebuilding and maintenance. The Private Finance Initiative (PFI), introduced in the late 1990s, delivered over 700 projects with a capital value of £60 billion. While it enabled rapid infrastructure development, its legacy is mixed.
Many schools remain locked into 25–30-year contracts, facing inflexible terms and escalating costs. Maintenance under PFI often came at a premium, and contract variations proved costly. Many of these are now coming to an end and we will see in more detail what emerges as part of this hand-back process and the lessons to be learnt.
The abolition of PFI in 2018 marked a turning point. The sector has evolved since then; the Welsh Government’s Mutual Investment Model (MIM) has emerged as a promising and smarter alternative path forward. MIM blends and retains private sector efficiency and delivery while embedding public sector accountability. The MIM model has taken some time to get the traction needed to deliver at pace and scale and the pilot schemes are only now just completing on site and the following wave of projects in design so time will tell how successful the programme will be.
Early indicators however are showing projects under MIM, such as the Sustainable Communities for Learning Programme, demonstrate how blended finance can serve strategic educational outcomes without compromising accountability. A blueprint potentially for smarter partnerships.
Please note that you are now leaving the AtkinsRéalis website (legal name: AtkinsRéalis Group inc.) and entering a website maintained by a third party (the "External Website") and that you do so at your own risk.
AtkinsRéalis has no control over the External Website, any data or other content contained therein or any additional linked websites. The link to the External Website is provided for convenience purposes only. By clicking "Accept" you acknowledge and agree that AtkinsRéalis is not responsible, and does not accept or assume any responsibility or liability whatsoever for the data protection policy, the content, the data or the technical operation of the External Website and/or any linked websites and that AtkinsRéalis is not liable for the terms and conditions (or terms of use) of the External Website. Further, you acknowledge and agree that you assume all risks resulting from entering and/or using the External Website and/or any linked websites.
BY ENTERING THE EXTERNAL WEBSITE, YOU ALSO ACKNOWLEDGE AND AGREE THAT YOU COMPLETELY AND IRREVOCABLY WAIVE ANY AND ALL RIGHTS AND CLAIMS AGAINST ATKINSRÉALIS, AND RELEASE, DISCHARGE, INDEMNIFY AND HOLD HARMLESS ATKINSRÉALIS, ITS OFFICERS, EMPLOYEES, DIRECTORS AND AGENTS FROM ANY AND ALL LIABILITY INCLUDING BUT NOT LIMITED TO LIABILITY FOR LOSS, DAMAGES, EXPENSES AND COSTS ARISING OUT OF OR IN CONNECTION WITH ENTERING AND/OR USING THE EXTERNAL WEBSITE AND/OR ANY LINKED WEBSITES AND ANY DATA AND/OR CONTENT CONTAINED THEREIN.
Such waiver and release specifically includes, without limitation, any and all rights and claims pertaining to reliance on the data or content of the External Website, or claims pertaining to the processing of personal data, including but not limited to any rights under any applicable data protection statute. You also recognize by clicking “Accept” that the terms of this disclaimer are reasonable.
The information provided by Virtua Research cited herein is provided “as is” and “as available” without warranty of any kind. Use of any Virtua Research data is at a user’s own risk and Virtua Research disclaims any liability for use of the Virtua Research data. Although the information is obtained or compiled from reliable sources Virtua Research neither can nor does guarantee or make any representation or warranty, either express or implied, as to the accuracy, validity, sequence, timeliness, completeness or continued availability of any information or data, including third-party content, made available herein. In no event shall Virtua Research be liable for any decision made or action or inaction taken in reliance on any information or data, including third-party content. Virtua Research further explicitly disclaims, to the fullest extent permitted by applicable law, any warranty of any kind, whether express or implied, including warranties of merchantability, fitness for a particular purpose and non-infringement.
The consensus estimate provided by Virtua Research is based on estimates, forecasts and predictions made by third party financial analysts, as described above. It is not prepared based on information provided by AtkinsRéalis and can only be seen as a consensus view on AtkinsRéalis' possible future results from an outside perspective. AtkinsRéalis has not provided input on these forecasts, except by referring to past publicly disclosed information. AtkinsRéalis does not accept any responsibility for the quality or accuracy of any individual or average of forecasts or estimates. This web page contains forward-looking statements based on current assumptions and forecasts made by third parties. Various known and unknown risks, uncertainties and other factors could lead to material differences between AtkinsRéalis' actual future results, financial situation, development or performance, and the estimates given here.
Looking ahead, the UK faces a well-documented pressing infrastructure deficit. The newly formed National Infrastructure and Service Transformation Authority (NISTA) and the 10-year infrastructure strategy signal a renewed appetite for private sector collaboration and quite honestly the only way we can close the gap and invest in the scale needed. However, future models must learn from past missteps. The opportunity lies in designing next-generation finance models that are transparent, adaptable, and focused on educational impact. Future frameworks, whether PPP 2.0 or new hybrids, must align private capital with public purpose.
Private finance isn’t the problem—it’s how we use it. With the right governance and goals, it can be a powerful tool to build the schools our communities deserve and desperately need.
Downloads
Trade releases