The Government has failed to support subcontractors in the aftermath of Carillion’s collapse – Rebecca Long Bailey
Rebecca Long Bailey MP, Shadow Secretary of State for Business, Energy and Industrial Strategy, commenting on the collapse of Carillion subcontractor Vaughan Engineering, said:
“This is devastating news. It was only a matter of time before Carillion’s collapse rippled down the supply chain causing businesses to go bankrupt and more workers to lose their jobs.
“Carillion was transferring risk to the thousands of small business within its supply chain by extending the payment period to 120 days and the Government failed to tackle this despite repeated warnings from industry bodies.
“The Government has failed to properly support subcontractors in the aftermath of Carillion’s collapse. Labour has demanded that the Government mandates the use of Project Bank Accounts for all major public construction projects and clear enforcement of payment of public sector subcontractors within 30 days.”