This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

Government support for Carillion suppliers to last just two days

16 January 2018

Cabinet Office minister David Lidlington has stated that suppliers to Carillion will have just two days of government support, according to the BBC.

The amount owed to suppliers is said to be in the region of £952m for 2016 and included a large number of SMEs, many of which have not been paid, said the report.

With the impact of the Carillion failure continuing to be assessed, many of its suppliers are expected to lose the money owed.

Calls for a review of how the crisis unfolded continue to be voiced, after the company failed yesterday with debts totalling £1.5bn.

Federation of Small Business (FSB) chief executive officer Mike Cherry said the situation had been made worse because Carillion had extended its payment schedule to suppliers last year.

"These unpaid bills may well go back several months," said Mr Cherry, who further stated that he had written to the company last July after many FSB members were waiting 120 days to be paid.

The BBC also quoted an accountancy firm partner who said losses would amount to hundreds of millions of pounds.

"Asset sales won't even raise enough to cover the debts of senior bank creditors, so many small firms won't see a bean," said the unnamed source.

It seems unlikely that the final details of the Carillion demise will be seen for many months, as figures continue to be analysed by the government and industry bodies.

Print this page | E-mail this page


Article image Why the Law Says You Need a Nappy Bin Disposal Service

At home, parents are used to disposing of their babies’ used nappies the same way they do any other domestic waste - bagging it up and sticking it in the rubbish for general collection.Full Story...

Article image Companies sign up to employ ex-offenders

More than 120 businesses have recently registered to work with prisons to provide employment options for offenders.Full Story...

Carel Group acquires 100% of Hygromatik GMBH

Legionella failings result in substantial fine and updated water management processes

Total Solutions MD Sharmin Akter at the Facilities Show 2018