Hounslow Council named in National Audit Office report on handling of Carillion collapse

The National Audit Office (NAO) has today (Thursday 7 June) published a report examining the government’s handling of the collapse of Carillion.

Published: Thursday, 7th June 2018

Green logo for the London Borough of Hounslow

The National Audit Office (NAO) has today (Thursday 7 June) published a report examining the government’s handling of the collapse of Carillion, into which Hounslow Council contributed and is named as one of the organisations affected.

Within the report the Council is listed as one of Carillion’s local authority contracts, providing maintenance of the borough’s parks, allotments, cemeteries and open spaces.

The report states that Hounslow Council was one of 26 public bodies to submit contingency plans in the event of Carillion’s liquidation to the Cabinet Office, in which the preferred contingency option was estimated to cost £1,468,000.

The borough’s parks, allotments and cemeteries were managed by Carillion until 1 March 2018, when management of these services was successfully transferred to GreenSpace 360, a subsidiary of the council-owned trading company Lampton 360.

As part of the transfer, Carillion staff responsible for managing these services became employees of GreenSpace 360 and four staff members became employees of Hounslow Council. 

The council showed its commitment to Carillion staff and to ensuring public services continued by meeting administrators’ demands to pay Carillion weekly fees after it emerged that staff would not be paid in February unless the council made the additional payment. This followed advance payments made to Carillion for services in January and February as part of the Settlement Agreement.

Councillor Steve Curran, Leader of Hounslow Council said:

“Before Carillion went into involuntary liquidation the council had already agreed to terminate the Parks contract early with a transfer date of 9 April 2018 set. Due to the events that unfolded, the transfer was brought forward to 1 March 2018. Our priorities have always been the continuity of services for our residents and ensuring that former Carillion staff are treated fairly. 
I’m proud to say we achieved a seamless early transfer of these services and were able to offer jobs to former Carillion staff.  We were pleased to contribute to the NAO’s investigation and have read the report with interest.”

The NAO scrutinises public spending for Parliament and is independent of government.

To find out about Hounslow’s parks and open spaces, including allotments and cemeteries in the borough, visit the Parks and Open Spaces homepage.

 

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