David Lidington
The government will require major public contractors to create ‘living wills’ in order to make it easier for another business to step in if the first collapses.
The announcement came after cabinet office minister David Lidington revealed that the government did not have “key organisational information” that could have smoothed the management of Carillion’s liquidation.
The Cabinet Office confirmed that Capita, Serco and Sopra Steria have volunteered to become the first three government suppliers to complete their living wills, which are expected to be ready within weeks.
Interserve and Engie are also understood to have volunteered for the scheme and living wills from other companies are set to follow.
In a speech to the Business Services Association this week, Lidington said: “By ensuring contingency plans can be quickly put in place in the very rare event of supplier failure, we will be better prepared to maintain continuity of critical public services.”
During his speech he also confirmed the government’s plan to use public contracts as a “force for good”.
He confirmed that by summer 2019, government procurements will be required to take social and economic benefits into account in certain priority areas. These include supporting small businesses, providing employment opportunities for disadvantaged people and reducing harm to the environment.
