Jon Trickett,Shadow Minister for the Cabinet Office said: “The Government must take urgent steps to ensure all existing contracts with Interserve are reviewed and that they are prevented from bidding for public sector contracts until they have proved they are financially stable and there is no risk to the taxpayer.”

He added: “The Government has once again dropped the ball on outsourcing and it’s the public who will suffer.

“Less than two weeks ago, I asked the Government what extraordinary steps they are taking to monitor the financial health of Interserve.

“They told me they “do not believe that any strategic supplier is in a similar situation to Carillion,” and in November Interserve continued to win public sector contracts worth millions, despite effectively being insolvent.”