Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, how often Carillion was stress-tested by his Department; when the last such stress test was carried out; and what the results of that stress test were.

Since profit warnings about Carillion were first issued in July 2017, the Government has been closely monitoring the situation and in constructive discussion with Carillion while it sought to refinance its business.

The Government has always worked to reduce risk and, of the small number of the contracts awarded since the July 2017 profit warning, virtually all were joint ventures with other companies, where the other companies are contractually bound take on Carillion's share of the work.

Suppliers have to meet certain criteria to be able to bid for public contracts, including a minimum level of financial and economic standing proven through turnover, audited accounts or other financial measures. At the time of bidding and the award of the Private Financial Initiative (PFI) contracts for the major hospital build projects for Royal Liverpool and Broadgreen University Hospitals NHS Trust and Sandwell and West Birmingham Hospitals NHS Trust in 2013 and 2015 respectively, Carillion passed all mandated financial and economic standing tests. The trusts concerned, working with the Department, had an obligation to treat Carillion fairly based on public procurement regulations and award them contracts.

The Official Receiver is investigating the events leading to the company’s insolvency and the Government need to let that happen and await its conclusions. The immediate and urgent focus is on the continuation of public services.