MPs’ bid to save suppliers from Carillion repeat
More than 200 MPs have backed a campaign to crack down on construction firms paying suppliers late in the wake of the Carillion collapse.
The construction giant owed around £800 million to thousands of sub-contractors when it collapsed in January.
The Aldous Bill, named after the MP Peter Aldous who is leading the campaign, is pushing to prevent large building firms from delaying payments.
Carillion owed around £800 million to sub-contractors when it collapsed in January
It aims to put supplier payments into safety deposit schemes so that if major firms go bust, sub-contractors are not left out of pocket.
Shadow Chancellor John McDonnell and Liberal Democrat leader Sir Vince Cable are among the politicians who have backed the bill, which will be debated in Parliament in October.
Maria Caulfield, Tory member for Lewes who was the 200th MP to sign up, said: ‘I have constituents who were impacted by Carillion.
Even my father and my husband work in the building trade, so I am all too aware of late payment and the issues with cash retentions.’
Labour MP James Frith said: ‘Government should heed the calls to pick up the pieces since Carillion went pop, to ensure damaging practices that led to this collapse aren’t repeated.’