Rebecca Long Bailey MP, Labour’s Shadow Secretary of Business, Energy and Industrial Strategy commenting on the joint select committee report on Carillion, said:

“This report shows that the big four need to be broken up. It highlighted what has been long known to industry insiders – that a cabal of four big auditors have too cosy a relationship with the companies they work for.

“There are a multitude of problems with the big four in the insolvency process such as the dependence of the insolvency practitioner on secured creditors for appointments. Therefore, making them primarily responsive to secured creditors’ wishes and the incentive for big firms to extend the insolvency process and rake in large fees.

“Millions racked up in debt, thousands of workers losing their jobs and pensions, and supply chain business at risk of collapse, because not only did the corporate auditors fail to hold Carillion’s misbehaving managers to account, but because the Government looked on in ignorance at the same time, proceeding to award contract after contract to a firm which had issued numerous profit warnings.

“The break-up of the big four is only the first step. There needs to be a root and branch reform of the law in this area.”