Colchester Borough Council has pledged help to local firms caught up in the collapse of construction giant Carillion.
Britain’s second largest construction firm, which employs 20,000 people in the UK, went into administration on Monday with debts of about £1.5bn.
Whilst most public services appear largely unaffected by the collapse, around 90 per cent of Carillion’s work is subcontracted to smaller private-sector suppliers.
Colchester Council has reported it has no financial or contractual exposure to Carillion.
Cllr Paul Smith (Lib Dem), Leader of the Council, said “Carillion’s reliance on sub-contractors has the potential to generate a domino-effect of insolvency along the supply chain and cause some local firms significant financial distress.
“We want those small businesses affected by any fallout to know that, as a council, we are ready and willing to support them.”
Mr Smith goes on to “urge any local firms affected by Carillion’s collapse to contact the Council” to see what help they might be able to provide.
Businesses experiencing financial difficulties or other issues related to Carillion going into administration, that may be eligible for hardship relief, should contact the Council on 01206 282300 or visit http://www.colchester.gov.uk/discretionaryraterelief for more information.