Morning Briefing: Carillion goes into liquidation

In the news

The papers are leading on Carillion’s collapse this morning, with the Financial Times reporting that the government had appointed an ‘official receiver’ to manage the liquidation and provide funds to maintain the public services provided by the company

David Lidington, minister for the Cabinet Office, told BBC Radio 4’s Today Programme that Carillion’s part in government joint ventures would be taken over by other companies in those joint ventures.

Rebecca Long-Bailey, shadow business secretary, told the same programme that the government ought to bring its public sector contracts with Carillion back in house.

One such contract was signed by the Northern Ireland Housing Executive in December last year, though the executive told the Belfast Telegraph that contingency plans were in place if the company went under.

Trade unions, according to The Times, have called for a public inquiry as questions are asked about why Carillion continued to win government contracts even after a string of profit warnings.

Meanwhile, Reuters reports an unusually high drop in house prices in London, the most significant since 2009.

Over the weekend, The Guardian also published an investigation into, as it puts it, “rogue landlords making millions out of housing benefits”.

On social media

Also questions about pay & the pay-offs for the CEO and CFO who ’left’ earlier this year. Looks to me as if the company more concerned about its top execs than its 20,000 workers! t.co/rMsnEDxyvc

— Andrew Adonis (@Andrew_Adonis)

Also questions about pay & the pay-offs for the CEO and CFO who 'left' earlier this year. Looks to me as if the company more concerned about its top execs than its 20,000 workers! https://t.co/rMsnEDxyvc

— Andrew Adonis (@Andrew_Adonis) January 15, 2018

Carillion’s crash underlines why PFI is a mistake in public services, a Con idea Labour expanded instead of scrapping and the Cons still use

— Kevin Maguire (@Kevin_Maguire)

Carillion's crash underlines why PFI is a mistake in public services, a Con idea Labour expanded instead of scrapping and the Cons still use

— Kevin Maguire (@Kevin_Maguire) January 15, 2018

UK minister saying "rules" forbade Govt from taking into account the fact that Carillion was going bust - that is what left means by "neoliberal state" - it crams profit into the mouths of dying companies

— Paul Mason (@paulmasonnews)

UK minister saying "rules" forbade Govt from taking into account the fact that Carillion was going bust - that is what left means by "neoliberal state" - it crams profit into the mouths of dying companies

— Paul Mason (@paulmasonnews) January 15, 2018

What’s on

• A statement on Carillion is expected in the House of Commons later today
• Elsewhere in parliament, the Communities and Local Government Select Committee begins its session on the Ministry of Housing, Communities and Local Government’s (formerly the Department for Communities and Local Government) annual report and accounts for 2016/17. Civil servants from the ministry will face questions