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Carillion collapse could lead to thousands of job losses in UK

Carillion collapse could lead to thousands of job losses in UK

In the face of mounting public anger at this news, the Insolvency Service announced that the bonuses would be halted but that will not stop the growing questions over what went wrong at Carillion and why the government continued to hand the company lucrative contracts despite being aware of difficulties.

The spokesman said that Aramark would immediately take over the services that Carillion could no longer provide and that there would be no interruption in services.

Afterwards, Mike Cherry, from the Federation of Small Businesses, said the amount pledged was unlikely to be enough to sufficiently recompense most contractors.

The Labour leader seized on prime minister Theresa May's statement that the Government was a "customer" not the "manager" of Carillion, telling the House of Commons, "I'm sorry but if these are public contracts we should be the manager and not have a middleman like Carillion creaming off the profits".

"We know how critical it will be for businesses within Carillion's supply chain to receive support with their cashflow, to help them through the temporary challenge to their business", said Gareth Oakley, MD of SME Banking, Lloyds Bank Commercial Banking.

Carillion, with about 20,000 employees in Britain, touched myriad sectors of British life, as well as operating overseas.

Its failure means the government will have to provide funding to maintain the public services run by Carillion.

Veteran Labour MP Frank Field, who chairs the work and pensions committee, said: 'I will be proposing we take evidence from the company directors, the trustees, the pensions regulator and the auditors who somehow concluded Carillion was a going concern'.

Some of Britain's biggest banks said they have set up emergency funds totaling £300 million ($416 million) to support small business hurt by the collapse of construction giant Carillion PLC. "That is part of what happens when you contract to the private sector".

Carillion was left mired in £1.3bn of debt as well as being saddled with a £600m pensions deficit. They also worked with a huge number of outsourcing companies, who will now be facing financial issues because Carillion owes them a large amount of money.

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