Responding to the announcement of overdraft extensions, payment holidays and fee waivers from a number of banks for small firms impacted by Carillion’s collapse, Federation of Small Businesses (FSB) National Chairman Mike Cherry, said: “The emergency measures put in place by banks for customers hit by Carillion’s collapse will provide some respite at a desperate time for hundreds of small firms. Many hundreds more are still yet to feel the knock-on impacts of the giant’s demise. It’s critical that they also receive support in the months ahead.
“We now need to establish a Carillion task force dedicated to helping all affected small firms and workers to recover and get back on their feet. Following Rover’s collapse in 2005, I was involved in a similar initiative where we successfully supported suppliers and found new opportunities for all of the firm’s apprentices.
“This sorry saga has shown that the Government’s reliance on a small number of huge outsourcing firms poses a risk to the nation’s economic stability. As thing stand, our procurement regime is stacked against small firms. Providing small businesses and the self-employed with more opportunities to secure public contracts will mean less risk and better return for the taxpayer. At the very least we need to see the reinstatement of the target date for achieving 33 per cent of all public sector procurement with smaller businesses, to 2020.”