PF2 (Private Finance 2)

PF2 (Private Finance 2) is a UK government program that funds public infrastructure projects, like schools, hospitals, and transportation, through private sector investment. Instead of the government paying upfront, private companies finance, build, and often manage these projects, and the government repays them over time with regular payments. This approach aims to leverage private sector efficiency, spread costs over the project's lifespan, and reduce immediate public expenditure. PF2 is a specific model within the broader private finance initiatives, emphasizing partnership between the public and private sectors to develop essential services efficiently and sustainably.