Report shows deals dropped to £7.3bn in 2007 from £9.6bn the previous year

The value of UK PFI deals signed in 2007 dropped by almost a quarter compared to the previous year, it has emerged.

A report by International Financial Services London shows that the value of PFI deals last year dropped to £7.3bn from £9.6bn in 2006.

The number of deals signed – 60 last year – was in line with the previous two years, but the drop in value was caused by a dipped in the annual deal size to £122m from £150m in 2006.

The drop in PFI work in the UK came despite a steady European market overall, with the total value of signed deals in the European PPP market remaining flat at €7.4bn.

As the UK market declines, activity elsewhere in Europe is set to expand, with projects currently in procurement totalling €67bn in 2007, up from€55bn in 2006. Italy is set to become the largest PPP market, with €30bn of projects currently being procured.