EXPERTS will spend years analysing and theorising about the causes of the unprecedented economic events of the past couple of months and the way the world banking system came to a virtual standstill.

But there are some common themes in the financial tumult around the world including unwise lending and the vulnerable position individuals, companies and other organisations can find themselves in by going too deeply in debt through borrowing. For several years local authorities, health trusts and other public bodies have been encouraged by the government to turn to the private sector when starting major construction projects.

Private Finance Initiatives, a partnership between the public and private sectors, were proclaimed to be the ideal way of getting infrastructure projects done without a huge immediate impact on the public purse – ie tax increases.

But everything has a price and it is now clear that interest repayments on some PFIs are going to prove financially painful to council taxpayers for years to come. Public officials must look very, very carefully at the commitments they are agreeing to now to avoid us all and our children having to repent at leisure.