Capita, Britain’s biggest outsourcing company, has not been awarded any central government contracts since January, when it issued a profit warning that wiped £1bn off its market capitalisation in a day.
Capita’s failure to win Cabinet Office work follows a furore over collapsed contractor Carillion, which continued to be awarded £2bn of public sector work in the run-up to its liquidation, leaving the government to step in to arrange the delivery of key services.
Oliver Dowden, Cabinet Office minister, told the House of Commons on Tuesday that it was undertaking “contingency planning with all its suppliers”. Capita had not won any central government contracts in the past three months, he said, although there had been contracts from the BBC and Northern Ireland authorities.
