Carillion collapse: Jeremy Corbyn slams Conservative government's 'rip-off privatisation policies' after 'watershed' moment

Jeremy Corbyn has described the collapse of Carillion as a watershed moment in a scathing attack on the “rip-off privatisation policies” of the Conservative government.

The construction and services giant announced it had gone bust early on Monday morning after emergency Whitehall talks failed to produce a rescue plan for the firm.

The firm employs 20,000 people across the UK and is heavily involved in many key infrastructure projects.

But it has racked up debts and liabilities of about £1.5 billion, leaving the Government under increasing pressure to intervene.

In a video message, the Labour leader said: “It is time to put an end to the rip-off privatisation policies that have done serious damage to our public services and fleeced the public of billions of pounds.”

He vowed to “take back control” of public services – linking the Carillion collapse to the NHS winter and the wider culture of outsourcing and privatisation.

He added: “Labour will end the PFI rip off, put an end the private-profit-is-best dogma and run our public services for the benefit of the many, not the profits of the few.

"This is a watershed moment. Across the public sector, the outsource-first dogma has wreaked havoc.

"Often it is the same companies that have gone from service to service, creaming off profits and failing to deliver the quality of service our people deserve.

“The evidence is clear and it is everywhere. Look at the up £2bn public bailout of Richard Branson's Virgin and Stagecoach for their own failure to run East Coast rail properly – or the scandal of the NHS being sued by private companies like Virgin after losing a contract bid."

Mr Corbyn continued: “Our public services – health, rail, prisons, even our Armed Forces' housing – are struggling after years of austerity and private contractors siphoning off profits from the public purse.

“It's time we took back control. We not only need to guarantee the public sector takes over the work Carillion was contracted to do – but go much further and end contracts where costs spiral, profits soar and services are hollowed out.”