Government Creates Task Force to Support Carillion Workers

Sean Reid
January 21, 2018

Government ministers met banks yesterday (17th January) to seek assurances that they will support small businesses affected by Carillion's liquidation.

Now Lloyds Banking Group (LBG) has announced a £50m package of support to its small business customers, as part of a range of emergency measures for those businesses within Carillion's supply chain which are now in financial difficulty.

He added the task force would include representatives from business, the construction trade associations, the trade unions, lenders and the Government.

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TUC general secretary Frances O'Grady welcomed the formation of the task force.

He says the banks' offer of support to businesses like his is "not very useful" since it effectively extends lending which he doesn't want on his business' books.

The Insolvency Service has also confirmed that it has contacted all of Carillion's private sector support service customers, such as those working in facilities and management, with over 90% stating they wish to continue with current arrangements. "We need urgent action to protect jobs, pay and pensions".

"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.

Meanwhile Nationwide Building Society will employ around 250 contractors from the company, meaning their jobs will be saved.

It also said that it would directly take on deals involving 1,500 workers with firms that had been sub-contracted to work for it via Carillion.

Britain's biggest corporate failure in a decade took place after banks pulled the plug, but UK Finance said lenders were taking steps to ease the impact on small firms affected by the liquidation.

Build UK which represents workers in the construction industry, estimates that up to 30,000 businesses are owed money by the collapsed construction firm.

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