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Taxpayers are being forced to pay more than £20billion in extra borrowing costs under Labour’s wasteful private finance initiative, according to a report. MPs said the scale of the interest being paid to finance contracts to run 700 hospital, school, prison and other public sector building projects was ‘shocking’. The cost of the extra borrowing – over and above the cost of borrowing had the Government used a more conventional method of paying for the projects – would alone be enough to finance the building of 40 new hospitals.
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