Thirteen housing schemes currently in procurement and worth over £1.2 billion will continue to be supported through the Private Finance Initiative during the next spending review period, the Department for Communities and Local Government (DCLG) and the Homes and Communities Agency (HCA) has confirmed.

Twenty-five housing schemes under contract will also continue to be supported, however funding support will be withdrawn for a further 13 pipeline schemes that would have cost an additional £1.9 billion.

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DCLG's decision – set out in a joint letter to Local Authorities from Richard McCarthy, director general for housing and planning at DCLG and HCA chief executive, Pat Ritchie – follows a review of housing PFI that could have seen support for all non-contractually committed schemes withdrawn, given DCLG's tight spending review settlement.

Pat Ritchie said: "I am pleased that despite having to make some tough decisions following the Spending Review, DCLG is able to commit support for these housing PFI schemes which have the potential to make a real difference to local communities.

"At the HCA we will now concentrate on helping Local Authorities maximise the impact of available funding, through our expertise on procurement and other technical services. We will also work with those councils which have received disappointing news today, to look at any ways in which their objectives might be supported through a non-PFI route."

(CD)