Government responsibilities

168. It will always be the case that even well-run companies will sometimes take poor decisions and be the authors of their own demise; no Government can prevent business failures. However, there are a number of lessons arising from the collapse of Carillion which may help to reduce the risks and impact of any future failures. These can be split into two categories. First, there are lessons for the Government on the way in which they manage the relationship with a company of such strategic importance. These are primarily matters for the Public Administration and Constitutional Affairs Committee. Second, the collapse of Carillion raises a series of questions about the wider business and pensions environment, for which the Government has ultimate responsibility, albeit much of it delegated to various regulators. The Government is responsible for ensuring that our current structure of stakeholder interests and incentives are balanced to best serve the public interest, and for ensuring that there is effective enforcement when things go wrong. Some of these issues are outlined below.

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