Decision details

To present the outcome of Bristol schools Ltd PFI benchmarking and consider the proposals to reduce annual unitary charge.

Cabinet

1. Noted the outcomes of soft services benchmarking exercises undertaken on the Bristol Schools Ltd PFI contracts.
2. Authorised the Director of Finance, in consultation with the Deputy Mayor and Cabinet member for Finance, Governance & Performance to accept, subject to complying with obligations in the Academy agreements, the proposal to reduce the annual unitary charge by £98kpa, (1.07% of the total contract value of £9,142,964.55 for 2021/22, which is subject to RPIX) (a whole life contract saving of £1,010,243.56 (subject to RPIX), and instruct the necessary financial adjustments to bring into effect all associated savings.
3. Noted that the Director of Finance, in consultation with the Deputy Mayor and Cabinet member for Finance, Governance & Performance, will progress further initiatives with the SPV which give rise to net savings to the Council and/or Schools thereby further reducing the PFI affordability gap, and where necessary seek approval from Cabinet.
4. Authorised the Director of Finance, in consultation with the Director of Legal and Democratic Services to negotiate, agree and enter into all necessary documents to give effect to recommendation 2.