Carillion collapse: Ministers hold emergency meeting

Cabinet ministers are holding a crisis meeting to keep vital public services going after the collapse of key government contractor Carillion.

An emergency Cobra meeting was planned for 18:30 GMT to deal with the fallout.

One of its largest contracts is with the MoD, and it maintains the homes of 50,000 military personnel.

The MoD announced earlier that: Today’s announcement about the financial situation of Carillion has no direct impact on services provided directly to those working for Defence, their families and the continuing work of the department.

It comes as Labour leader Jeremy Corbyn attacked government policies and called Carillion a “watershed moment”.

In a video released on social media, he said: “In the wake of the collapse of the contractor Carillion, it is time to put an end to the rip-off privatisation policies that have done serious damage to our public services and fleeced the public of billions of pounds.”

Carillion ran into trouble after losing money on big public sector contracts and running up huge debts of around £1.5bn.

The facilities management contracts that provide catering, cleaning and maintenance services to Defence are all joint ventures involving partners in addition to Carillion.

Contractually, these partners are required to continue to deliver services if one of the other partners fails.

The MoD remains committed to these joint ventures, and has been working with relevant partners to ensure a smooth continuation of the provision of these services.

“The MoD is confident in the robustness of these arrangements and the strength of the supporting suppliers” a spokesman said.