Reassurances given over Carillion's contracts with South Shields and Jarrow schools

Jarrow School, which is one of two in South Tyneside which had links to now-defunct Carillion.

South Tyneside Council has confirmed two schools in the borough had deals with the construction and facilities giant - which went into liquidation on Monday after talks held with the Government during the weekend did not result in a rescue plan.

The firm, which employs an estimated 2,000 people across the region and was the country’s second biggest construction company, collapsed with debts of £1.5 billion.

The council has said the firm provided a package of facilities management at South Shields School, in Nevinson Avenue, and Jarrow School, in Field Terrace.

Thses include cleaning, caretaker, key holding, maintenance and repair services.

It also provides the school meals service at South Shields School, but not at Jarrow School.

A council spokesman, which was also commenting on behalf of both schools, said: “The council has no direct relationship with Carillion.

“Carillion is sub-contracted by an external supplier for two of our schools to manage their facilities and some of their operations.

“The council has been reassured that contingency plans are in place and business will continue as normal until a permanent solution is found.”

South Tyneside NHS Foundation Trust has said it has no links with Carillion.

The company built the £17 million Cleadon Park Primary Care Centre and Library in Prince Edward Road, South Shields, alongside inspiredspaces.

The building was developed as part of a partnership between South Tyneside Primary Care Trust and the council.

The Government has announced its directors are to be investigated, while an official receiver is reviewing all of its contracts while Treasury Select Committee chairman and Conservative MP Nicky Morgan has also asked Bank of England representatives about the impact of Carillion’s collapse on financial services.