Wednesday, July 28, 2021

FSB responds to fears about Interserve collapse

Fears that Interserve is at risk of dropping into administration have once again highlighted the dangers of putting important work into the hands of huge organisations, says the Federation of Small Businesses.

The organisation’s National Chairman Mike Cherry said: “At a time when political uncertainty is weighing heavily on small business confidence, this development will spark further fears across its supply chain.

“A year on from Carillion’s demise, lessons still need to be learnt. We have to move to an environment where Project Bank Accounts are the norm for large public procurement projects, and big contracts broken up to provide opportunities for smaller firms. Doing so will diversify and de-risk supply chains, meaning higher performance.

“Thankfully – following FSB’s tireless campaigning in this space – Interserve is one of a few big outsourcers with a ‘living will’ in place. That means work should be handed straight on to new suppliers, helping to avoid a Carillion-style meltdown.

“We will be checking that this takes places seamlessly and easily, and look to the Government to make sure it does. We continue to have promising conversations with other big firms that win large swathes of public contracts.

“In future, providing those responsible for public procurement with the skills they need to divvy up contracts is a must. Without the expertise required to make that happen, it’s all too easy to hand big chunks of work to the same old faces.

“So-called ‘aggregation’, which reduces competition and leads to these mega risks, has run its course.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemichaving a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.

Latest news

Related news

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.