Question to the Cabinet Office:

To ask Her Majesty's Government what assessment they have made of the current financial situation of Carillion; and what consideration they have given to mandating the use of bank accounts in England for public infrastructure projects in order to protect smaller sub-contractors on such projects.

The Cabinet Office tracks the financial status of all of HMG’s Strategic Suppliers and manages risks accordingly. Carillion plc is a Strategic Supplier to Her Majesty’s Government, publicly listed company and is required to comply with all rules and regulations of the London Stock Exchange. We are expecting the company to be publishing its half-year results on the 29th September.

The Government Construction Strategy, as set out by the Infrastructure and Projects Authority (IPA), does not mandate the use of Project Bank Accounts (PBAs) in England for public infrastructure projects. However, the policy states they are recognised as an effective mechanism for facilitating fair payment to the construction supply chain and that departments have committed to use them unless there are compelling reasons not to do so. The use of PBA’s can be found in the Government Construction Strategy, which can be found here: https://www.gov.uk/government/publications/government-construction-strategy-2016-2020.