To review the financial position of the Whitecross PFI contract and inform Schools Forum of any necessary action.

The strategic finance manager presented the findings of the triennial review of the Whitecross PFI contract. It was noted that the level of inflation had generally been below the 2.5% included in the finance model. Should inflation continue at its current low rate through to the end of the contract then the council would be able to cease paying into the sinking fund a year or two earlier than planned. The contract was felt to be working well and no changes were proposed for the next three year period.

In response to a query the SFM explained that in the event Whitecross School was expanded any building work undertaken through the PFI contract would be expensive and the council would need to consider carefully how to proceed. The headteacher confirmed that the school was aware of the costs to the council of any kind of expansion. While some very informal conversations had taken place around possible future expansion this had not proceeded further at this stage.

It was resolved that:

(a)    The council’s existing contribution of £928,350 pa be continued until the next triennial review in Autumn 2023.