Firms are still suffering after Carillion collapse, union research reveals

FIRMS ARE still suffering from the collapse of engineering giant Carillion and outsourcing contracts let by the public sector are increasing a year after the group went out of business, research reveals.

The GMB union said the value of outsourcing contracts has increased by 53 per cent over the past year.

The union has launched a campaign to mark the first anniversary of Carillion’s demise, calling for an end to outsourcing and privatisation of public services.

GMB’s Rehana Azam said: “Despite the tragic fiasco of Carillion, the Government hasn’t learned its lesson.

“The Conservatives are hellbent on privatisation and outsourcing our public services, regardless of the consequences.

“What other explanation can there be for this huge increase on outsourced contracts in the year Carillion went bust and when other outsourcing giants look like they’re on life support?”

The Electrical Contractors Association said many small enterprises were still feeling the impact of not being paid because of Carillion’s collapse.

Mike Cherry, of the Federation of Small Businesses said: “The collapse of Carillion was a watershed moment that brutally exposed the shocking ways that some big businesses treat their suppliers.”

A Government spokeswoman said: “This Government has taken great strides to improve how we work with the private sector, including requiring companies to demonstrate prompt payment to suppliers and piloting ‘living wills’ for critical contracts, allowing contingency plans to be quickly put into place if needed.”