Council ‘to save millions’ as Scotland’s first PPP schools contract ends

Scotland’s first schools PPP funding contract has ended after 25 years.

School services in the Falkirk area have come back into council control in a move expected to save millions every year.

The public-private partnership with Class 98 was the first of its kind for Scottish schools and came to an end last month, with all services from catering to energy now brought back into local authority hands.

It covered five institutions – Bo’ness Academy, Braes High, Graeme High and Larbert High, plus the Thistle Wing Annexe, which caters for primary-aged children with severe and complex additional support needs.

The capital cost of the schools was reportedly £65m. However, it was expected that the contract would have seen Falkirk Council pay out £316.4m to Class 98 over the 25-year term.

Buying back the premises has cost a further £5m – far less than the current market value of £21.2m. A full report will be given to councillors next week. However, the full cost of the contract is not specified in papers released in advance of that meeting.

Falkirk Council has said the change will deliver annual savings of around £2m in 2025-26 and £3m per annum from the following year. Other benefits are said to include “consistent service standards” across all local secondaries, reinvestment in education and services, and improved energy efficiency measures, with solar panel installations planned.

Around 80 staff working in maintenance, cleaning, janitorial and other services have now transferred to the council.

Paul Kettrick, the authority’s head of investment, assets and climate, commented: “This marks a significant milestone not just for Falkirk but for Scotland. As the first area to see a schools PPP come to an end, Falkirk has set out a clear approach for managing the transition, securing savings, and ensuring local communities benefit for years to come.  

“Bringing these schools back into council management gives us greater control, ensures value for money and allows us to reinvest savings directly into education. It also brings real benefits for staff, families and pupils, who can expect consistent standards across all our schools. We’re determined that this next chapter for the schools estate delivers improved services, greater community access and secures on financial savings by not paying management costs and charges.”