In the heart of Stoke-on-Trent, a significant financial dilemma looms over 88 schools as the 25-year Private Finance Initiative (PFI) contract nears its conclusion. Signed in 2000 between Stoke-on-Trent City Council and Transform Schools (Stoke) Limited (TSSL), the contract is set to expire in October. Fears abound that TSSL will exit without fulfilling repair obligations, leaving schools facing potentially astronomical bills for uncompleted work.
The contract, which mandates schools to pay for building maintenance, has become a source of contention. Illustrative of the high costs, a primary school reported an annual £400 fee for a single plug socket in a staff room. During a BBC visit last month, one classroom was partially cordoned off with hazard tape due to falling plaster, highlighting ongoing safety concerns.
Schools have long pursued repairs under the contract, which obligates them to work through Equans, the designated maintenance provider. An investigation revealed that in January, 35 schools received letters from Stoke-on-Trent City Council threatening legal action. Furthermore, they were informed that insufficient funds remained to complete all necessary repairs before the contract's end.
None of the 88 schools have received compensation for alleged contract failures, such as repair delays over the contract's duration. The BBC's analysis of TSSL's financial accounts over 25 years found that since 2014, £416,000 was declared as deductions from the contract—less than 1% of fees in most years.
The PFI primarily focused on maintaining existing school infrastructure, with limited new construction. The Cabinet Office conducted expiry health checks on Stoke's PFI schools in March 2021 and March 2024. These surveys indicated that total repair costs would run into millions.
Mr. Beardmore, an involved party, expressed his frustration regarding the situation:
"There's no money, there's no will to do it, and there's no time in order to put these things into place." – Mr Beardmore
He further emphasized the financial burden this predicament imposes:
"It's going to leave us severely out of pocket – and there's absolutely nothing we can do about it." – Mr Beardmore
The contract's impending expiration raises significant concerns among school officials and stakeholders. With no clear resolution or financial relief in sight, the schools face an uncertain future, burdened by unresolved maintenance issues and potential legal battles.
