Summary

  • Get in touch: bizlivepage@bbc.co.uk

  • Carillion files for voluntary liquidation

  • Cobra committee meets

  • Pension schemes go into rescue fund

  • Government defends Carillion contracts

  • MPs call for inquiry into collapse

  1. Question timepublished at 14:26

    Bernard Jenkin, chairman of the Commons Public Administration and Constitutional Affairs Committee, tweets that he and fellow MPs will be questioning Sir Jeremy Heywood, head of the Civil Service, along with Rupert McNeil and John Manzoni of the Cabinet Office this afternoon.

    You may not be surprised to learn that some of the questions will be about the collapse of Carillion.

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  2. Counting the costs of Carillion collapsepublished at 14:19 Greenwich Mean Time 15 January 2018

    MotorwayImage source, Getty Images

    The knock-on effects from Carillion's collapse are being felt across the construction sector.

    On many projects, the UK's second biggest construction firm was working with partners. Here's a recap of the estimated costs for some of those firms:

    • Galliford Try said it was facing a £60m-£80m hole in the funding of the Aberdeen Western Peripheral Route road project in Scotland
    • Balfour Beatty is predicting a £35m-£45m hit to three joint ventures: the same Aberdeen road project, the A14 in Cambridgeshire and the M60 Junction 8 to M62 Junction 20 scheme
    • Kier Group said it has contingency plans in place for its HS2 and Highways England smart motorways programme
  3. Midlands hospital 'will clearly happen'published at 14:06 Greenwich Mean Time 15 January 2018

    Carillion's collapse has raised questions over the completion of a £350m hospital near Birmingham.

    But Toby Lewis, chief executive of the Sandwell and West Birmingham Hospitals NHS Trust, sought to ease fears by saying work on the Midland Metro hospital is "almost complete."

    In a statement, external he said: "People working for Carillion are part of our local community and we will want to do anything that we can do to support their needs and futures at this difficult time.”

    TweetImage source, Twitter/Toby Lewis
  4. Scottish 'contingency plans in place'published at 13:56 Greenwich Mean Time 15 January 2018

    Aberdeen bypassImage source, SEPA

    Carillion was involved in several major projects in Scotland, including the Aberdeen bypass (pictured) and the electrification of the central Scotland railway line.

    The Scottish government has said contingency plans are in place for contracts affected by the firm's collapse.

    Ministers said the plans included the Aberdeen Western Peripheral Road, which is being built by a consortium which includes Carillion.

    The government said the contract had "a mechanism" for the other joint venture partners to deliver the project - as is happening in projects south of the border as well.

  5. Ministers 'closed their eyes to the risks'published at 13:46 Greenwich Mean Time 15 January 2018

    The World at One
    BBC Radio 4

    Lord AdonisImage source, Reuters

    The collapse of key government contractor Carillion should "put the private sector itself in the dock", says Lord Adonis, the government's former infrastructure tsar.

    Carillion was awarded £2bn of government contracts last year, despite issuing warnings that it would suffer a major slump in profits.

    The ministers who issued those contracts "closed their eyes to the big risk" at Carillion, Lord Adonis says.

    They effectively "propped up the company", and it shows "the state is far too ready to contract with private companies," he added.

  6. What does Carillion do?published at 13:34 Greenwich Mean Time 15 January 2018

    Before its collapse, Carillion was far from being a household name.

    However, over the years, the UK's second biggest construction firm has put up much of the fabric of the country.

    And through its 450 government contracts, Carillion is responsible for looking after prisons, schools, hospitals, roads and rail networks.

    Here is a clear graphic explaining what the company does in the UK:

    Graphic of what Carillion does
  7. Fuel cards 'aren't working' - RMTpublished at 13:27 Greenwich Mean Time 15 January 2018

    Petrol pumpImage source, PA

    Fuel cards issued to Carillion workers were rejected at some petrol stations this morning, according to the RMT trade union.

    Staff including train cleaners and van drivers have been told to work normally, but some are reporting that their fuel cards are not working, the union said.

    One cleaner filled up at a petrol station, but the Carillion Fuel Card bounced. The RMT said it was the start of the "brutal reality" facing Carillion workers.

  8. Have your say: Playing fast and loosepublished at 13:21 Greenwich Mean Time 15 January 2018

    Was the government right to keep awarding contracts to Carillion? One reader, Craig Palmer, isn't convinced.

    What about you? Get in touch at bizlivepage@bbc.co.uk.

    Carillion knew in July of 2017 that it was facing a difficult trading conditions. it approached the government to secure new contracts in the hope it would bolster their position, and give them breathing space with their creditors. The government awarded those contracts knowing the financial difficulties, and that the lenders were already "calling in" their loans.

    Both are culpable. Carillion deferred looking for new buyers last year, believing the new contracts would be their saviour, and the government played fast and loose with public funds when there were other companies who could have managed the contracts.

    Craig Palmer

  9. Which prisons are affected?published at 13:12 Greenwich Mean Time 15 January 2018

    Belmarsh prisonImage source, PA

    Carillion had two contracts to maintain about 50 jails - nearly half the UK's prisons - which involved doing routine repairs of buildings and cells.

    The jails are in London, the south and east of England, and include high-profile sites such as Belmarsh, Dartmoor, Pentonville, Wandsworth and Wormwood Scrubs.

    BBC Home Affairs correspondent Danny Shaw says it's "business as usual" at the moment for workers on those contracts.

    But in the longer term, the Ministry of Justice is drawing up plans to bring the work, worth about £200m, back in-house.

  10. What are Carillion's government contracts?published at 13:05 Greenwich Mean Time 15 January 2018

    Carillion's government contractsImage source, BBC/PA
  11. Liverpool hospital builders sent homepublished at 13:00 Greenwich Mean Time 15 January 2018

    BBC Radio 5 live

    Ambulances at Royal Liverpool HospitalImage source, PA

    Workers on the brand-new Royal Liverpool Hospital building came into work this morning, only to be sent home just after 07:30 because of Carillion's collapse.

    "There are no workers on site. The only people who are here are the security staff looking after the site," says 5 live reporter Nick Garnett.

    The new building - which was due to be completed last year - was one of Carillion's biggest construction projects in the UK.

    The workers were told to come back in tomorrow. "There's nothing they can do at the moment because they don't know what's going to happen," Nick Garnett adds.

  12. 'Governance was lacking at Carillion'published at 12:52 Greenwich Mean Time 15 January 2018

    CarillionImage source, Carillion

    Roger Barker, head of corporate governance at the Institute of Directors, says: "Today's outcome suggests that effective governance was lacking at Carillion, and we must now consider if the board and shareholders have exercised appropriate oversight prior to the collapse."

    He said: "There are some worrying signs. The relaxation of clawback conditions for executive bonuses in 2016 appears in retrospect to be highly inappropriate.

    "It does no good to the reputation of UK business when top managers appear to benefit in spite of the collapse of the organisations that they are responsible for."

  13. Do you work for Carillion?published at 12:42 Greenwich Mean Time 15 January 2018

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  14. Amey steps into the breachpublished at 12:38 Greenwich Mean Time 15 January 2018

    Royal NavyImage source, Getty Images

    Amey worked with Carillion to maintain 49,000 homes for families with members in the Armed Services.

    They also repair and build infrastructures on 280 RAF stations, Army garrisons, Naval bases and defence sites across the UK.

    Amey says that it can carry on maintaining these contracts.

    It said: "For the past few weeks, Amey has been working on detailed contingency plans with the Defence Infrastructure Organisation and the Cabinet Office to ensure it can effectively continue to manage the contracts and these are being implemented today."

  15. 'Wages and salaries will be paid'published at 12:32 Greenwich Mean Time 15 January 2018

    Cabinet Office minister David Lidington - who was effectively made Theresa May's deputy last week - says the collapse of construction giant Carillion is "a matter of great regret".

    But he also tells the BBC that the government will provide financial support to ensure Carillion's workers are still paid.

    Media caption,

    Carillion wages and salaries will be paid - Lidington

  16. HS2 partner has 'contingency plans'published at 12:25 Greenwich Mean Time 15 January 2018

    HS2 workersImage source, HS2

    One of Carillion's partners on building part of the £56bn HS2 project says it has "contingency plans" in place to minimise disruption.

    Kier Group was in a joint venture with Carillion to build two parts of the high-speed rail network, including one of the most controversial and complex areas of the route that runs between the Chiltern tunnels and Brackley.

    Kier said, external there would be a "short period of transition", but it didn't expect to take a financial hit from Carillion's collapse.

    Kier was also working with the firm on part of England's smart motorways programme, and said this would be unaffected too. Its shares are up nearly 1% on the news.

  17. Carillion HQ jobs at risk?published at 12:18 Greenwich Mean Time 15 January 2018

    Carillion HQImage source, Getty Images

    Pat McFadden, MP for Wolverhampton, says his "key concern" after the collapse of Carillion will be for the 400 jobs at the company's city headquarters.

    He said he hoped as much employment as possible can be salvaged "out of the wreckage of all this".

    Mr McFadden called on the government to "stabilise the situation" and give confidence to the public "who rely on the services for which Carillion and its subcontractors were responsible".

    The business minister, Andrew Griffiths, is expected to make a statement in the Commons this afternoon.

  18. School's out for Carillionpublished at 12:13 Greenwich Mean Time 15 January 2018

    School childrenImage source, Getty Images

    Carillion delivers more than 32,000 school meals every day. It also cleans and maintains a huge number of schools in the UK.

    Julia Harnden, funding specialist at the Association of School and College Leaders, said: "The government has announced that it will continue to deliver all public sector services following the insolvency of Carillion and this should mean that services provided to schools continue without any problems.

    "But we will be monitoring the situation closely and we will be talking to the Department for Education and updating members with any further information. In the meantime it would be useful for schools to confirm with their providers that there is no issue with any services."

  19. Galliford tots up cost of Carillionpublished at 11:57 Greenwich Mean Time 15 January 2018

    Aberdeen Western Peripheral RouteImage source, Aberdeen Western Peripheral Route

    Galliford Try, the construction and housing group, estimates that Carillion's collapse will cost the business between £30m and £40m.

    Galliford Try is involved in just one contract with Carillion - the £550m Aberdeen Western Peripheral Route contract to build a new road measuring 58km.

    Balfour Beatty is also a partner in the project.

    Galliford said: "The companies will discuss the position urgently with the Official Receiver of Carillion and Transport Scotland, to minimise any impact on the project."

  20. 'Why did the government not act sooner'published at 11:50 Greenwich Mean Time 15 January 2018

    Labour says questions must be answered over the collapse of construction giant Carillion.

    Read More