Home Business Government protects essential public services as Carillion declares insolvency

Government protects essential public services as Carillion declares insolvency

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The government will continue to deliver all public sector services following the insolvency of Carillion PLC.

Today (15 January 2017) the Rt Hon David Lidington CBE MP Minister for the Cabinet Office and Chancellor for the Duchy of Lancaster announced the government will continue to deliver all public sector services following the insolvency of Carillion PLC.

After meeting with their bankers and lenders, Carillion has announced its decision to initiate insolvency proceedings. The Official Receiver has been appointed by the court as liquidator along with partners at PwC that have been appointed Special Managers.

Government will provide the necessary funding required by the Official Receiver to maintain public services.

Those already receiving their pensions will continue to receive payment. A dedicated web page and helpline have also been set up for workers who may be concerned or have questions about their personal situation.

The Rt Hon David Lidington CBE MP said:

“It is regrettable that Carillion has not been able to find suitable financing options with its lenders but taxpayers cannot be expected to bail out a private sector company.

“Since profit warnings were first issued in July, the Government has been closely monitoring the situation and has been in constructive discussion with Carillion while it sought to refinance its business. We remained hopeful that a solution could be found while putting robust contingency plans in place to prepare for every eventuality. It is of course disappointing that Carillion has become insolvent, but our primary responsibility has always been keep our essential public services running safely.

“We understand that some members of the public will be concerned by recent news reports. For clarity – All employees should keep coming to work, you will continue to get paid. Staff that are engaged on public sector contracts still have important work to do.

“Since its inception in the 1990s private finance has helped to deliver around £60 billion of much-needed capital investment in infrastructure in the UK across a range of projects and we will continue to maintain partnerships with responsible firms in future.”

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