PFI expert quits RBS after his team is moved to London

Jeff Thornton, head of the Royal Bank of Scotland’s infrastructure and PFI unit, has quit after the company’s decision to relocate his team from Edinburgh to London.

Thornton, who has led the team since the mid-1990s, is regarded as one of the UK’s leading PFI experts. His shock departure will fuel speculation that he is in line for a top job at the Treasury, particularly as Richard Abadie, the head of the chancellor’s PFI unit, is leaving at the end of 2006.

However, Building understands that Thornton has little interest in a public sector role and has not applied for Abadie’s job.

All of the leading figures tipped for the job are dropping out of the race. It is understood that Nick Prior, the director of the Ministry of Defence’s private finance unit, was invited to apply, but turned down the opportunity. It was due to be announced yesterday that Prior would be joining Deloitte & Touche at the end of the month as a senior corporate finance partner specialising in PPP.

Richard Payne, a former director of Currie & Brown, has also been linked to the job but is not thought to be actively chasing it.

However, up to nine people have applied for the job, which the Treasury is now hoping to offer to someone with an industry rather than banking or advisory background.

A source close to RBS said Thornton was eyeing several jobs that specialise in infrastructure – not necessarily PFI – with banks, funders and accountants.

“Interesting proposals are being put to him,” the source said.

RBS claims it is the largest provider of PPP finance in the UK. Its projects include the £180m Edinburgh Royal Infirmary and this year’s £553m Birmingham acute and adult psychiatric hospitals scheme.

RBS took the decision to relocate the 14-strong infrastructure and PFI unit last month. It is believed that the move has resulted in tensions between the London and Edinburgh offices.

Thornton declined to comment.