Key information, guidance and government advice for councils following the collapse of construction giant Carillion.
Construction giant Carillion has gone into liquidation after suffering significant financial troubles. While the number of councils that have contracts with Carillion is relatively small, the firm does hold contracts for services ranging from school meals, libraries, facilities management and some construction projects such as roads.
On January 15, the LGA released a short statement on the situation:
“A relatively small number of councils are affected by the collapse of Carillion. They have been monitoring the situation closely and are implementing contingency plans to keep services running as normally as possible.
“Councils are also working with other public sector partners in their local area to be ready for any wider knock-on effects of Carillion’s failure.”
Update 9 February
A number of councils have contacted the LGA to advise that they have been experiencing significantly higher charges than the 20 per cent estimated uplift by the Official Receiver. This issue has been raised again with central government. You may be interested in reading the written answers published from the Minister for Local Government on this issue. These can be accessed here and here. The advice is to go back to the Official Receiver and continue to negotiate with your Special Manager at PwC. Councils have been successful in getting the amount reduced to around the estimated uplift figure. Please keep us advised by emailing [email protected].
Key information and contacts
- The Government has a resource of information for those affected by the Carillion collapse, including regular updates and information for employers, suppliers and creditors.
- PWC also has advice and phone numbers on its website. Colleagues at City of Wolverhampton Council, where Carillion is based, are urging all councils that have Carillion public sector contracts that they may be interested in running or helping to re-broker to register their interest through the PWC website.
- The Cabinet Office Minister provided a written statement about Carillion on January 23 and MPs debated this and the issue of public sector outsourcing.
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Please contact your LGA Principal Adviser who can help in the first instance.
