CARILLION’S collapse into administration spells failure for the neoliberal approach to renewing infrastructure and running public services, but working people are expected to pay the price once again.

The company began life as a merger of construction companies but has spread through the mechanism of private finance initiatives (PFI) into management of public services, including schools, hospitals, libraries and prisons, acting, with a number of similar conglomerates, as government contractors of choice, and engaging subcontractors for particular services.

This PFI model commended itself to Tories, Liberal Democrats and New Labour for two stated reasons.