- Carillion crisis—implications for local government
- What obligations do LAs have to step in to assume the delivery of public services which were once contracted to Carillion (presumably statutory duties etc)?
- What obligations do LAs have in terms of re-procuring the contracts for service delivery? Are there emergency powers they can use to expedite the process?
- Are there likely to be any further funds made available from central government to cover the costs of providing these additional unbudgeted for services in schools, hospitals or local authorities?
- How will these costs be provided for in local authorities’ budgets? Will this create solvency issues for local authorities? Can this be used to justify increased council tax charges?
- Are there any other issues which are worth mentioning?
Local Government analysis: With repercussions from Carillion’s collapse still hitting the headlines, Olwen Dutton, partner and head of local government at Anthony Collins solicitors, explains the implications for local authorities (LAs) who had contracted services to the company and considers what lessons can be learnt from the crisis.
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