The government's private finance initiative has not produced superior schools, according to a study by the Audit Commission.

The report, released today, says the PFI has led to cramped classrooms, while schools were not completed more quickly or at better value than those built by local councils.

Forum Response: GMB

John Edmonds, general secretary for the GMB, said: " The involvement of profit making companies in public services does not give value for money. Now we know why the government refused to do an independent review.

"The concerns of our members and others in the Labour movement have been proved right."

Local Government Association

Chris Price, Executive director of 4ps, an agency set up by the LGA to advise and support local councils involved in PFI projects, told ePolitix.com: "The schools PFI programme is delivering great improvements in our schools, and 4ps has been working with local authorities throughout the complex and demanding procurement process. A number of authorities are now on their second or third schools PFI project, recognising the success of PFI as an effective procurement method.

"There are already dozens of PFI schools where teachers, governors, students and parents are all delighted at the results. There will be many more. There is already evidence that the many successful PFI projects are helping to improve educational standards, mainly because teachers can concentrate on education, leaving concerns about running the premises to their partner firms. A number of authorities are now on their second or third project, recognising the success of PFI as a concept."

Forum Response: Professional Association of Teachers

Jean Gemmell, general secretary for PAT and former secondary school head teacher, said: "This report raises some serious concerns. Poor school buildings demotivate children and teachers and can affect their health and safety and the quality of education in a school. The government claims that PFI was supposed to improve school buildings, but this report seems to indicate otherwise in many cases.

"We would prefer more money to be given directly to schools, rather than tied up in expensive PFI schemes. Money should be allocated according to the needs of pupils and teachers, not according to a school's ability to market itself and win funding. Schools should not have to take part in a lottery.

"The issue of poor acoustics covered in the report is one that PAT has been concerned about for some time. PAT has highlighted the problem of teachers suffering from voice damage. Many teachers have to struggle to be heard in classrooms that are overcrowded, badly designed, poorly ventilated and noisy. Continued voice strain can lead to serious damage to the vocal system. Unfortunately, voice loss has ended the career of some teachers. Employers are required to look after employees' welfare, yet few seem aware of a problem which affects teachers and, consequently, pupils' education.

"It is absolutely imperative that architects designing for school premises take on board the opinions and comments of those who actually work in them."Forum Response: ACCA

Andy Wynne, head of public sector technical issues for ACCA, said: "The findings of the Audit Commission echo the conclusions of a survey by ACCA (the Association of Chartered Certified Accountants) which show that accountants working in the public sector do not believe that the Private Finance Initiative (PFI), the key method being used by the government to increase levels of investment in public services, is providing value for money.

"Around £22 billion has already been spent on PFI schemes, where the private sector has been involved in funding and running new hospitals, schools and roads, with more schemes worth nearly £80 billion in the pipeline. Nearly 200 ACCA members working in the UK public sector, including the NHS, local government, central government, education, charities, the police and prison services, responded to a survey asking their views on PFI. Of these, 42 per cent did not think PFI was having a beneficial effect on public services, while only 2 per cent felt strongly that it did.

" 57 per cent did not believe that PFI generally provides value for money. The same percentage agreed that, as PFI is now the only available way of getting the necessary investment in public services, public sector organisations are prevented from achieving value for money. Slightly more, 58 per cent, did not believe that PFI schemes are all objectively tested as to whether they provide value for money.

"Where accountants had been involved in PFI, as financial directors, advisers, project managers or accountants, 39 per cent said that they would not opt for private sector involvement in future, if they were able to choose freely between PFI and direct public sector procurement and management. 48% said they would not advise other organisations to use the PFI route for good value for money.

" While our members appreciate that many schools, hospitals, prisons and roads have been built through PFI, there is still a deep scepticism about the benefits of PFI. Many finance professionals have real concerns over the cost, bureaucracy, time taken in progressing schemes and long term revenue commitments involved with PFI, the main source of capital which is now available to them."

Forum Response: The Business Services Association

Norman Rose, director-general for the BSA, said: "We would not deny that in some early PFI projects building design and quality may not have been as good as might now be desired. This is the consequence of poorly specified projects and inexperienced clients and can be attributed to the immaturity of the market and the desire for quick fixes.

"It is significant that the users of the new school buildings are reported in all cases as preferring the new facilities to the old. There can be no doubt that the past record of under-investment and lack of ongoing maintenance of school buildings will be addressed most effectively under the specifications of long-term PFI contracts.

"However, the full benefit of PFI will only be realised where an intelligent and capable client is able to focus on the needs of the end user, rather than cost constraints. Despite the depressing snapshot picture painted by the report, I am confident that the long-term benefit to local communities will be great."