Maintenance work at Pentonville prison to carry on as normal after Carillion collapse

Pentonville Prison maintenance work will carry on as normal after Carillion's collapse. Picture: PA (Image: PA Wire/PA Images)

The construction giant this morning announced that crunch talks over the weekend to drive down debt and shore up its balance sheet had not produced the “short term financial support” it needed.

Carillion is a key supplier to the government, with contracts in the rail industry, education and NHS. It also carries out maintenance work at Pentonville, for which it has been heavily criticised in recent years.

But the Ministry of Justice (MOJ) has confirmed services will operate as usual at the Caledonian Road jail.

Cabinet minister David Lidington said the government would be providing the necessary funding required to maintain public services.

He said: “We understand some members of the public will be concerned by recent news reports.

“For clarity – all employees should keep coming to work, you will continue to get paid. Staff that are engaged on public sector contracts still have important work to do.”

Carillion chairman Philip Green, announced the news this morning.

He said: “This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years.

“Over recent months huge efforts have been made to restructure Carillion to deliver its sustainable future.

“In recent days however we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision.

“We understand that HM Government will be providing the necessary funding required by the Official Receiver to maintain the public services carried on by Carillion staff, subcontractors and suppliers. “

Jim Kennedy, Unite’s national officer for local government, said a public inquiry was needed.