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Carillion collapse to cost taxpayers £148m

07 June 2018

With the impact of the Carillion collapse earlier this year continuing to be evaluated, the latest figures indicate the cost to the taxpayer will be in the region of £148m.

Estimated by the National Audit Office (NAO), which revealed that more than 11,600 former Carillion employees were now employed elsewhere.

The company continues to employ 3,000 people and it had made 2,332 redundant, a figure that represents 13% of its former workforce, according to the NAO.

In addition to the £148m taxpayer expense, there have been many more costly consequences of the company's collapse earlier this year.

It had accrued debts of around £1.5bn and its unpaid bills have forced many of its former supply chain partners out of business, a situation which continues to be assessed.

The NAO report said that nearly all services, including its 420 UK public sector contracts, continued without interruption after the business closed last January.

Many of these have now been reassigned to other service providers or taken in-house by former clients, although questions remain for some of its construction projects.

Since the failure of the business, discussions are continuing to be held on improving public sector procurement processes, supply chain payment terms and improved accountancy practices.

Uncertainties were highlighted by the NAO concerning the estimated £148m cost, due to the timing and extent of ongoing sales of assets.

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