Private Finance Initiative (PFI) has the potential to leave taxpayers footing a bill of over £300 billion.

The news comes from the analysis of a series of contracts sanctioned by the Treasury office. PFI contracts currently total 717 and provide funding for hospitals, schools and other forms of public facilities.

PFI provides funding totalling £54.7 billion for public infrastructure, however the expected final repayments are to total near £300 billion. The scheme has come under criticism for failing to be cost effective, with running costs making the scheme inefficient when compared with direct loans.