Serco chief calls for outsourcer code of conduct following Carillion failure

Serco chief executive Rupert Soames on Thursday called for a new code of conduct to be set up between the Government and outsourcers in the wake of Carillion’s collapse.

Soames made the plea as he warned of a “probably bumpy” road ahead for the government contractor business, which saw revenues slip 2% to £2.95 billion last year.

The grandson of Sir Winston Churchill said: “There has been a loss of trust and confidence in the ability of private suppliers after the Carillion failure. We think that taxpayers have a right to know what they are getting for their money.”

He wants outsourcers to agree to pay subcontractors on time, maintain solid balance sheets and properly fund pension schemes. From the Government’s side, “they shouldn’t impose demands that are unreasonable”.

Serco’s trading profits last year fell to £69.8 million from £82.1 million. However, the firm expects profits to grow this year and next.

Shares in the business rose 5p to 95.95p.

Recent contract wins include a £1.5 billion deal to run Grafton Prison which is in New South Wales and the biggest jail in Australia.

The firm is attempting to bounce back from a litany of disasters, including charging the Government for tagging some criminals who were dead, imprisoned or non-existent.