"NO Money" is an interesting phrase.
Of course there is no money, so long as a PSBR exists (or whatever the PSBR is called this week). If the government has to borrow money to operate, it is self evident that there is "NO Money".
However, the UK government still manages to spend money on various initiatives, whether from income or borrowing, to the tune of 720bn last year.
There is certainly money to spend, and FSTA would have been small beer in comparison with the overall budget had it been bought outright say over 5 years.
The PFI is just another way to borrow the money. It takes the borrowing "off balance sheet" and allows the "on balance sheet" expenditure to be put against things that people will vote for.
Politics.