Carillion taskforce pledges to minimise impact of collapse on suppliers

A government taskforce set up to monitor and advise construction firms – especially SME suppliers – on the impact of Carillion’s liquidation has met for the first time.

Chaired by Greg Clark, with support from the Small Business Minister Andrew Griffiths, the taskforce’s attendees included representatives from leading business bodies, the construction trade sector, unions, banks and government.

The taskforce will help coordinate the work taking place around Carillion insolvency so those affected get the help they need to recover.

The meeting built on a series of talks held by the Business Secretary this week with trade associations, unions and banks.

Mr Clark described the meeting as constructive and said it covered a range of issues, including support from the banks, HMRC, and the offer from the Construction Industry Training Board for apprentices. It also identified how relevant information could be shared to keep people in work and training.

Mr Clark said: “It got key people round the table to drive forward steps that we believe can give confidence to workers and the supply chain; support from banks, the ability to link workers with employment and support for apprentices.

“I am determined that collectively we will take the steps necessary to give workers and businesses the information they need at this difficult time.”

Issues to be covered in the next meeting will include job matching and contract matching.

The meeting following the announcement by several banks that they would offer help to small business impacted by Carillion’s collapse.

HSBC has a £100m fund available, RBS £75m and Lloyds £50m.

Lloyds said its fund is designed to support the working capital needs of suppliers currently experiencing financial difficulty. It will provide them, subject to credit approval, with arrangement fee-free overdrafts and, for the most severely impacted, with capital repayment holidays on loans for an initial six month period, to help with cashflow shortages caused by the liquidation.

Customers will also be able use the fund to extend or draw new invoice discounting or factoring products, free of arrangement fees.

The bank’s support will also include guidance on working capital requirements to help firms unlock cash so they can manage their way through the difficulties they currently face.

Gareth Oakley, Managing Director, SME Banking, Lloyds Bank Commercial Banking, said: “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. The measures launched today will ensure these small businesses have the financial support they need to get themselves back on track.”

Mr Clark said: “It is essential that small businesses exposed are given the support they need by their lenders, and I look forward to other banks following suit.”

HMRC’s announcement highlighted ways that the Business Payment Support Service could help affected firms.

It said: “The government understands that many businesses that were contracted to Carillion will be concerned about their ability to pay their tax. As part of its ongoing commitment to delivering support for businesses, HMRC will provide practical advice and guidance to those affected through its Business Payment Support Service (BPSS).”

The BPSS said it would:
• agree instalment arrangements if firms are unable to pay their tax on time following the Carillion collapse
• suspend any debt collection proceedings
• review penalties for missing statutory deadlines
• reduce any payments on account
• agree payment deferrals due to short-term cash flow difficulties

Click here to sign up to receive our new South West business news...
Close