Laura Sharman 16 January 2018

Councils bring services in-house following Carillion collapse

Councils bring services in-house following Carillion collapse

Councils across the country are bringing services back in-house following the news Carillion has gone into liquidation.

Oxfordshire County Council has taken over the running of services provided by Carillion including some school meals and cleaning. 

The council said it has been preparing for the collapse of the construction and facilities management companies for some time and would ensure all staff are paid.

Measures to terminate the council’s contracts with Carillion had already started, after an agreement was reached to transfer services back to the council last July.

‘We had concerns over their performance, particularly in respect of construction projects, but we also wanted to deliver a more ambitious agenda around property than the contract allowed,’ explained Alexandra Bailey, director of property, assets and investment at the council.

She added: ‘It was only after we’d reached agreement with Carillion to end the contract that the company’s financial difficulties became clear, and this news helped to explain some of the poor performance we had experienced. We then accelerated the process of ending the contract and bringing services back in-house.’

Hounslow Council also said it has been preparing for the collapse of Carillion, and had already agreed to terminate its contract for parks, cemeteries and allotments early on 9 April 2018. It will now transfer these services to the council’s wholly-owned trading company, Lampton 360.

Leader of the council, cllr Steve Curran, said: ‘We have been planning behind the scenes for the potential collapse of Carillion before April for some time, and it has been our intention to transfer the service to Lampton 360 earlier if necessary.

‘We are making sure that the appointed administrators understand our wish to do this, as soon as possible, so that we can protect the staff and the services.’

Croydon Council also confirmed it has taken its libraries back in-house.

 
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