Stock Market News
UK taxpayer stuck with £148m bill after Carillion collapse
The UK taxpayer has been stuck with a bill of at least £148m courtesy of government contractor Carillion after its spectacular collapse in January with debts of £1.5bn, the National Audit Office (NAO) said on Thursday.
In a report, the NAO said the actual cost would be higher "because some public sector bodies are paying a 20% premium for post-liquidation services and some customers will incur costs in replacing Carillion as a contractor".
"The total cost to the taxpayer will be higher than this Many public sector customers, including the special purpose vehicles delivering PFI contracts, are objecting to paying this, and many dispute outstanding invoices relating to the period before liquidation."
The NAO said there would be further costs to the wide economy and hits for companies in Carillion's supply chain.
At the point of liquidation Carillion had around 420 contracts with the UK public sector including direct contracts, sub-contracts and special purpose vehicles to deliver private finance schemes. These included services for hospitals, schools, the armed forces, prisons and transport.
This £148 million would be covered by the £150 million the Cabinet Office has already provided to help finance the costs of liquidation.
The £148 million is lower than the rough estimate made by the Cabinet Office before liquidation of £314 million to £374 million
Since then, nearly two-thirds of its UK workforce have found new jobs.
The NAO said 11,638 Carillion workers in the UK, about 64% of the total, were now employed elsewhere. Of the rest, 2,332 - 13% of the total - had been made redundant and the remaining 3,000 were still employed by Carillion.
In a report, the NAO said the actual cost would be higher "because some public sector bodies are paying a 20% premium for post-liquidation services and some customers will incur costs in replacing Carillion as a contractor".
"The total cost to the taxpayer will be higher than this Many public sector customers, including the special purpose vehicles delivering PFI contracts, are objecting to paying this, and many dispute outstanding invoices relating to the period before liquidation."
The NAO said there would be further costs to the wide economy and hits for companies in Carillion's supply chain.
At the point of liquidation Carillion had around 420 contracts with the UK public sector including direct contracts, sub-contracts and special purpose vehicles to deliver private finance schemes. These included services for hospitals, schools, the armed forces, prisons and transport.
This £148 million would be covered by the £150 million the Cabinet Office has already provided to help finance the costs of liquidation.
The £148 million is lower than the rough estimate made by the Cabinet Office before liquidation of £314 million to £374 million
Since then, nearly two-thirds of its UK workforce have found new jobs.
The NAO said 11,638 Carillion workers in the UK, about 64% of the total, were now employed elsewhere. Of the rest, 2,332 - 13% of the total - had been made redundant and the remaining 3,000 were still employed by Carillion.
Related share prices |
---|
Carillion (CLLN) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price