Lessons to be learned from the collapse of Carillion

The UK must seek to learn important lessons, it is essential that the value of public-private partnerships is not overlooked.

Following Carillion’s collapse, public-private partnerships have come under significant scrutiny, with increasing calls for business to be kept out of key areas such as utilities and public services. This is despite a need for private sector investment and innovation to help solve some of society’s toughest challenges.

The debate continues to intensify, with the Shadow Chancellor, John McDonnell MP, outlining Labour’s proposals to cut business involvement and replace it by increased levels of public ownership.

In response to the proposals, CBI Managing Director for People and Infrastructure, Neil Carberry, cautioned the Labour Party, highlighting that if Labour turns its back on good collaboration between the government and the private sector, public services, infrastructure and taxpayers will ultimately pay the price.

Reflecting on the implications of Carillion’s collapse, CBI Deputy Director-General Josh Hardie, argued that government and industry must avoid ideological responses and instead learn lessons based on evidence.

As a starting point for this, the CBI has called for an evidence-led strategic review into the health and sustainability of the public-sector marketplace, and have offered support with this process.

In the months ahead, the response to Carillion must be led by evidence, not ideology, and maintain a sense of perspective on the important contributions of public-private partnerships – this is something the CBI will continue to champion.