The relationship between the Government and private sector companies which supply services needs to be urgently reviewed in the wake of Carillion’s collapse, some of the company’s rivals will tell MPs this week.

The bosses of Mitie and Serco will appear in front of Parliament’s Public Administration and Constitutional Affairs committee today as the Government gathers evidence in an attempt to avoid another high profile collapse of a business providing core services to ­institutions such as schools and hospitals.

Rupert Soames, the chief executive of Serco, said in his submission to the committee ahead of the session that there is “an urgent need to re-think the relationship between the UK Government and its suppliers”.

He said that a “fundamental tenet of commercial life” is that “risk must be balanced by reward”, but that this was not always in proper balance in Government procurement. This had produced an “increasingly enfeebled supply base,” he said.