Shadow Secretary of State for Communities and Local Government, Andrew Gwynne, has reacted with frustration as the construction giant Carillion has entered liquidation, risking thousands of jobs across the country.
The outsourcing construction company had been awarded £2 billion worth of Government contracts at a time when Carillion had issued three profit warnings.
Carillion is involved in a number of major Government projects such as the HS2 high-speed rail line, as well as managing services for schools and prisons. It is the second biggest supplier of maintenance services to the rail company Network Rail, and it maintains 50,000 homes for the Ministry of Defence.
Andrew Gwynne MP, Shadow Secretary of State for Communities and Local Government said:
“It’s deeply concerning that many local authorities have contracts with Carillion on a whole range of local public services.
“The Government must offer urgent support to councils to ensure that staff have some certainty over their future and that contingency measures are immediately put in place to ensure the seamless provision of services.
“In the longer-term I can reiterate that the next Labour Government will introduce provisions to allow local councils to bring their outsourced services back in-house. Never again should public services and the dedicated workforce be put in the position we now find ourselves with Carillion.”