New support for firms hit by Carillion collapse

The government-owned British Business Bank is to support up to £100 million of lending to small businesses, including subcontractors, affected by Carillion’s collapse.

Trade body UK Finance, representing the UK’S leading banks, also confirmed a multi-million-pound package for SMES, and extra help for personal banking customers concerned about mortgage or credit card payments.

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.”

Meanwhile, thousands of Carillion workers are facing “chaos and confusion”, a union has warned, after 377 redundancies at the collapsed group were confirmed.

Some 919 workers at the giant construction and outsourcing firm have had their jobs protected.

But “despite best efforts” it has not been possible to save the jobs of 377 staff, a spokesman for the official receiver said.

The Unite union said the latest announcements meant “thousands of workers remain in limbo”.

Those jobs have been saved are involved in infrastructure projects, central and local government, and construction contracts. They are transferring to new employers who have taken on this work.