John Spanswick, chairman of Bovis Lend Lease and the Major Contractors Group, is due to attend a meeting with the Treasury today to thrash out the industry’s concerns over PFI.

Spanswick is to attend the meeting with Stephen Ratcliffe, MCG chief executive. The problem of high bid costs associated with PFI projects is likely to be high on the agenda.

Spanswick said: “The government is not listening yet,” but added that talks would continue.

Bovis this week revealed a 13% increase in operating profit before tax, to £80.2m. Profit in the European business contributed the most, at £43.5m.

Australian Bob Johnston was appointed chief executive of Bovis Lend Lease last month, after parent company Lend Lease restructured the group into three global businesses: construction and PFI (Bovis), retail and communities, and investment management.

Spanswick said he and Johnston would be working alongside each other to explore “synergies across the global business and to get the three regions working more closely”.