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More jobs go in fallout from Carillion collapse

More jobs have been lost following the collapse of construction and support services giant Carillion, taking the total to more than 2,300.

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More jobs have been lost at Carillion

The Official Receiver also announced today that a further 129 workers have transferred from the Wolverhampton-based business to other employers.

The update came as MPs are expected to publish a damning report this week into the collapse which took place at the end of January.

It will detail how Carillion executives used suppliers to prop up its failing business model.

Evidence from lender Santander has shown that the company had used its early payment facility to conceal the true level of borrowing.

Carillion was signed up to the Government's prompt payment code for dealing with suppliers but had been making them wait for 120 days or more for their money

When Carillion collapsed it had total pension liabilities of about £2.6 billion and other debts of more than £4bn.

It employed more than 19,000 people on Britain when it went into liquidation

A total of 2,301 jobs have been lost with the nine this week, while 11,618 have been saved and 1,103 workers have left the business after finding new work or taking retirement.

Just over 3,000 Carillion employees have been retained to work on public and private sector contracts, until decisions are taken to transfer or cease these contracts.

Meanwhile, a study found that half of sub-contractors in the construction industry are wary of working with main contractors as a result of the Carillion crisis.

Bibby Financial Services said there had been a shift in attitudes following Carillion's liquidation in January.

Kash Ahmad, of Bibby Financial Services, said: "It is clear that January's news has sent repercussions throughout the sector and subcontractors working within the supply chain of large main contractors have serious concerns about others suffering a similar fate.

"It's now vital that both public and private sector organisations work together to support the sector's small and medium-sized enterprises at this pivotal time."

The nine further redundancies are being made in roles no longer required as the remaining business reduces. Those who are leaving the business will be provided with every support to find new work by Jobcentre Plus’ Rapid Response Service

Discussions continue with potential purchasers for Carillion’s remaining contracts and with staff, elected employee representatives and unions as these arrangements are confirmed.