Spending watchdogs have recently criticised the cost of PFI schemes.

But the CBI hit back today saying private cash is vital to deliver new roads, hospitals and schools as public spending stalls.

A new CBI report, Building Strong Foundations: Financing UK Infrastructure, puts forward a package of measures to boost infrastructure investment through effective public-private partnerships.

And the authors want to see the Government publish a clear pipeline of major projects to attract investors.

Dr Neil Bentley, CBI Deputy Director-General, said: “Given the current state of the public finances, private finance must be an option if the public is to continue to access quality new schools, hospitals and other infrastructure at an affordable price.

“We want the Government to publish a clear, long-term pipeline of projects so that investors can have the confidence to put their money in the UK.

“Infrastructure spending also offers one of the biggest bangs for buck in terms of additional economic activity, so this is a chance to generate jobs, growth and build for the future.

“Thanks to the use of private finance and expertise, hundreds of hospitals, schools and homes have been built, with the vast majority delivered on time and on budget. But let’s be clear, private finance should only be used when it offers best value for money.

“PFI mustn’t be viewed as the solution on every occasion, but when it has been used effectively it has delivered huge improvements in the UK’s infrastructure.

“Businesses understand that the use of PFI must evolve and that we need to develop new ways to pay for our infrastructure. But ministers must stand up for the role that private finance has to play and decide sooner rather than later how to use it to best effect.”

Measures the CBI is calling for to boost infrastructure investment and ensure value for money include: