This paper, prepared by the UK National Audit Office for the House of Lords Economic Affairs Committee Inquiry on Private Finance, examines the use of private finance in the delivery public service delivery.

The report draws on independent analysis conducted by the National Audit Office in this field, including its reports on the value for money of using private finance and the accounting treatment of private finance projects in their audits of the financial accounts of central government.

The paper gives some background on private finance and the history of its use. It then sets out findings on costs and benefits of private finance, the institutional incentives to use it, the value for money of private finance and the risks associated with using it.