A £199 billion Private Finance Initiative bill will need to be footed by the taxpayer, even if there are no further deals struck, the National Audit Office (NAO) has found.

There are currently 716 deals operating under PFI and its successor PF2, which accumulated an annual charge of £10.3 billion in 2016/17 which will stretch into the 2040s.

The survey was commissioned prior to Carillion collapsing but the publication comes in the aftermath of the construction giant's demise, which led to Labour leader Jeremy Corbyn to slam the "costly racket" of the current system.

Mr Corbyn told Theresa May at Prime Minister's Questions in the House of Commons: "These corporations need to be shown the door. We need our public services provided by public employees with a public service ethos and a strong public oversight."

The NAO found that the private finance policy "results in additional costs compared to publicly financed procurement". Back in 2010 he Government's National Infrastructure Plan said capital raised through PFI cost 2% to 3.75% more than from state borrowing..