Banks offer support for SMEs affected by Carillion insolvency

Friday 19 January 2018 10:22 CET | News

The Federation of Master Builders (FMB) has called on banks to show leniency to the thousands of SMEs in Carillion’s supply chain.

Finance and banking trade body UK Finance reported this week that major banks are working closely with the UK government to limit the impact of the firm’s liquidation on SME firms.

The announcement comes after business secretary Greg Clark, economic secretary to the Treasury John Glen, and small business minister Andrew Griffiths, met banks yesterday to seek assurances that they will support small businesses affected by Carillion’s liquidation.

Banks represented at the meeting included Barclays, HSBC, Lloyds, RBS, Santander, Shawbrook and Aldermore. They were joined by the British Business Bank.

More than that, HMRC has outlined the support being offered to those businesses contracted to Carillion that may be concerned about their ability to pay tax. HMRC are providing practical advice and guidance to those affected through its Business Payment Support Service (BPSS).

The Insolvency Service has also confirmed that they have contacted all of Carillion’s private sector service customers, such as those working in facilities and management, with over 90% stating they wish to continue with current arrangements. This will provide funding which enables the Official Receiver to retain the employees working on those contacts.

Separately, the Insolvency Service has confirmed that work has paused on construction sites, pending decisions as to how and if they will be restarted.

The Federation of Small Businesses (FSB) said the emergency bank support must pave the way for a Carillion task force.

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Keywords: banks, SMEs, supply chain, financing, treasury, insolvency, Carillion
Categories: Banking & Fintech | E-invoicing, SCF & E-procurement
Countries: World
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Banking & Fintech