The Department for Communities and Local Government and the Homes and Communities Agency confirmed that 13 planned schemes in the pipeline via the Private Finance Initiative will not go ahead.

But the agency said another 13 housing schemes currently in procurement and worth over £1.2bn will continue to be supported through PFI during the next spending review period.

Another 25 housing schemes under contract will also continue to be supported.

The decision follows a review of housing PFI that could have seen support for all non-contractually committed schemes withdrawn.

HCA chief executive Pat Ritchie said: “I am pleased that despite having to make some tough decisions following the Spending Review, DCLG is able to commit support for these housing PFI schemes which have the potential to make a real difference to local communities.

“At the HCA we will now concentrate on helping Local Authorities maximise the impact of available funding, through our expertise on procurement and other technical services.

“We will also work with those councils which have received disappointing news today, to look at any ways in which their objectives might be supported through a non-PFI route.”

The 13 schemes currently in procurement will now be subject to a further rigorous review of value for money, with the outcome expected in December.

The full list of schemes in procurement which are continuing and the pipeline projects which have been axed: