Banking trade body UK Finance has thrown its support behind SME companies affected by Carillion’s collapse, stating the banking industry must support the supply chain.
The trade association, which represents nearly 300 leading firms providing banking, finance, markets and payments-related services in the UK, announced yesterday that lenders are putting in place emergency measures, including overdraft extensions, payment holidays and fee waivers, to ensure those facing difficulties relating to Carillion’s liquidation can stay on track.
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According to its latest set of accounts, Carillion was holding more than £800m in payments owed to the supply chain.
Stephen Pegge, managing director at UK Finance, said: “UK banks and the government are working closely to make sure the impact of the Carillion liquidation on SMEs in the supply chain is understood and managed in a way that best supports those in need of assistance.
“Lenders are contacting customers and, where appropriate, are putting in place emergency measures, including overdraft extensions, payment holidays and fee waivers to ensure those facing short-term issues can be helped to stay on track.”
Greg Clark has also written to the Insolvency Service and the Official Receiver asking that the statutory investigation into the conduct of Carillion’s directors is fast-tracked and extended in scope.
HMRC has also said it will help affected contractors, offering them more time to pay tax bills and providing workers with cash support through the tax credits system.
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