PARLIAMENTARY WRITTEN QUESTION
Carillion: Insolvency (16 January 2018)

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to support SMEs and their employees in Carillion's supply chain following that company's liquidation.

Asked by:
Stephen Morgan (Labour)

My rt. hon. Friend, the Secretary of State for Business, Energy and Industrial Strategy and I are working to ensure information is provided to SMEs in the Carillion supply chain and employees of the business in a timely manner.

On 18 January, the Secretary of State chaired the first meeting of a taskforce to advise on the impact on small businesses and employees affected by Carillion insolvency. It will act as a means for government to communicate to those affected by Carillion’s liquidation, including the wider supply chain, assess wider economic impacts and consider how to ensure that employees are provided with the right support to maximise rapid re-employment. The taskforce’s attendees included representatives from leading business bodies, the construction trade sector, unions, banks and government.

I have met twice with leading business and construction trade bodies, representing Carillion’s sub-contractors, to understand the impact of Carillion’s insolvency on the supply chain, and agree actions that could be taken to mitigate this. It is our intention to continue to meet regularly with this group on an ongoing basis.

The Secretary of State and I met major high street lenders on 17 January 2018 to seek assurances that they will not penalise small businesses affected by Carillion’s liquidation. Lenders are contacting customers and, where appropriate, are putting in place emergency measures, including overdraft extensions, payment holidays and fee waivers to ensure those facing short term issues can be helped to stay on track.

Support is being provided by the Government to affected employees through the Job Centre Plus Rapid Response Service and local government initiatives. The Department is also providing a range of advice and support services for firms, delivered both nationally and locally available to SMEs affected by the insolvency of Carillion. These include a network of 38 Local Growth Hubs, run in conjunction with the Local Enterprise Partnership, to help businesses of all sizes and in all sectors to access support.

Information is published online by the Insolvency Service for employees, creditors and suppliers affected and seeking advice. In addition to providing current information, they provide a dedicated hotline for enquiries and contact numbers to other relevant organisations such as the Pensions Advisory Service, and the website PwC have been established to provide information.

These can be found at: https://www.gov.uk/government/news/carillion-declares-insolvency-information-for-employees-creditors-and-suppliers.

Answered by:
Andrew Griffiths (Conservative)
22 January 2018