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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.

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