The Government will bail out workers and businesses affected by the Carillion collapse, reports have revealed.
In a recent statement, the Department for Business, Energy & Industrial Strategy (BEIS) said it wants to help small and medium-sized enterprises (SMEs) who were owed money by the construction giant.
Under the new proposals, the British Business Bank will put up £100 million to lend to small businesses through its delivery partners. UK Finance has also confirmed an additional multi-million pound package for SMEs and extra help for customers concerned about their mortgages or credit card payments.
The BEIS added that industry and Government would continue to work together to ensure businesses are workers are supported following Carillion’s liquidation.
Recent figures suggest that as many as 30,000 firms will be affected by late payments and cancelled contracts, with “17 to 18 per cent” expected to not make it through the next five years.
Business Secretary Greg Clark said: “We want to signal very clearly to small and medium sized businesses who were owed money by Carillion that they will be supported to continue trading.
“The banks have responded to my request by agreeing to support businesses and individuals affected. This further guarantee will help those businesses who may not be able to provide the usual security for a loan.
“I will continue to work closely with business organisations, trade unions and banks to actively support those affected by Carillion’s insolvency.”