Much of this fall in spending is down to the legal and financial engineering of PFI contracts. These typically take longer to complete than conventional public works funded from tax and borrowing. Under the coalition matters have become even more complicated with the morphing of PFI into "PF2", essentially PFI with a few tweaks. PF2 still keeps the deferred cost of paying for the infrastructure out of government deficit figures.
Annual PFI payments in the next financial year, mostly incurred under the previous government contracts will hit eleven figures for the first time: 10.2bn.
It is believed that the NHS accounts for 12 Billion of the 54 Billion of investment through PFI. Because these debts are incurred under 30 year contracts they cannot be reduced. Thousands of doctor's and nurses' jobs have already been cut since 2010 to pay for PFI. The axe-wielding has only just begun
(from Private Eye, 1357)