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Lessons for government: monitoring and responding to companies in distress


Direct intervention in the private sector has generally been seen as a last resort by the Government, with private sector companies allowed to fail as part of the efficient working of markets and the economy. The Government’s approach in this area is now changing, with the pandemic, war in Ukraine and the energy crisis all seeing the state intervene to keep companies functioning.

The UK Government Resilience Framework proposes a shift towards prevention and preparation, and the Government is also working to improve its understanding of critical supply chains, including chemicals, communications, energy, and water. The Committee has also reported on several examples of government involvement in distressed companies and suppliers, including Bulb Energy, Carillion and Community Rehabilitation Companies.

Based on a National Audit Office report setting out the wider government context to interventions, the Committee will take evidence from senior HM Treasury and Department for Business and Trade officials on subjects including:

• The financial monitoring of water companies;

• Support to steel companies;

• Interventions to sustain critical supply chains;

• Interventions to manage the failure of government suppliers.

If you have evidence on these issues, please submit it here by 23:59 on Sunday 7 January 2024.

Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere. The Committee is not able to investigate individual cases or companies.