Government backs support package for Carillion contractors

Blog Liquidation SMEs

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The Government has backed a support package aimed at helping firms caught in the Carillion collapse.

The construction giant was placed into compulsory liquidation in January after suffering a series of loss-making contracts.

Under the proposals, the British Business Bank will support up to £100 million of lending to small businesses, while UK Finance will offer an additional multi-million pound package for SMEs and extra help for customers concerned about their mortgage or credit card payments.

The report says industry and Government will continue to work together to ensure businesses and workers are supported following Carillion’s liquidation.

Recent figures suggest that as many as 30,000 firms will be affected by late payments and cancelled contracts, with “17 to 18 per cent” expected to not make it through the next five years.

Business Secretary Greg Clark said: “We want to signal very clearly to small and medium sized businesses who were owed money by Carillion that they will be supported to continue trading.

“The banks have responded to my request by agreeing to support businesses and individuals affected. This further guarantee will help those businesses who may not be able to provide the usual security for a loan.”

A spokesperson for the Official Receiver said this week that hundreds of jobs will be lost as part of the ongoing liquidation of the Carillion group.

“Unfortunately, 452 posts are being made redundant. They cover a variety of roles connected with private and public contracts across different parts of the country, as well as back-office functions.”