Jeremy Corbyn attacks Conservatives' 'rip-off privatisation policies' after Carillion collapse

'Our public services – health, rail, prisons, even our Armed Forces' housing – are struggling after years of austerity'

Jeremy Corbyn has launched a scathing attack on the Conservative Government's "rip-off privatisation policies" following the collapse of failed construction company Carillion.

It was announced the company was going into liquidation today raising fears about the future of hundreds of major projects and thousands of jobs across the country in an already challenging time for the economy.

Carillion was one of the Government's most important contractors and provides services for schools, prisons and hospitals.

In a video released through social media, the Labour leader said that the company's collapse was a "watershed moment" and made a rallying call for the need to "take back control" of public services.

He also linked the Carillion fiasco with the winter crisis in the NHS and the broader culture of privatisation and outsourcing, which he said is causing damage throughout the public sector – including in health, rail, prisons and even Armed Forces' housing, with Carillion maintaining 50,000 home for the Ministry of Defence.

Corbyn also pledged that “Labour will end the PFI rip off, put an end the private-profit-is-best dogma and run our public services for the benefit of the many, not the profits of the few”.

"In the wake of the collapse of the contractor Carillion, it is time to put an end to the rip-off privatisation policies that have done serious damage to our public services and fleeced the public out of billions of pounds," he said.

"This is a watershed moment. Across the public sector, the outsource-first dogma has wreaked havoc.

"Often it is the same companies that have gone from service to service, creaming off profits and failing to deliver the quality of service our people deserve.

“The evidence is clear and it is everywhere. Look at the up £2bn public bailout of Richard Branson's Virgin and Stagecoach for their own failure to run East Coast rail properly – or the scandal of the NHS being sued by private companies like Virgin after losing a contract bid."

He added: “Staff and patients in our NHS are facing shocking conditions this winter. Tory underfunding has caused the crisis, but privatisation, outsourced contracts and profiteering has made it worse.

“Our public services – health, rail, prisons, even our Armed Forces' housing – are struggling after years of austerity and private contractors siphoning off profits from the public purse.

“It's time we took back control. We not only need to guarantee the public sector takes over the work Carillion was contracted to do – but go much further and end contracts where costs spiral, profits soar and services are hollowed out.

"Labour will end the PFI rip off, put an end the private-profit-is-best dogma and run our public services for the benefit of the many, not the profits of the few.”

Carillion first revealed it was in trouble in summer last year after running up debts of around £1.5bn.

The Government is now facing major questions as to why it awarded £2bn worth of official contracts to the company after it issued a string of profit warnings.