CONSTRUCTION giant Carillion has said it has "no choice but to take steps to enter into compulsory liquidation with immediate effect" after talks failed to find another way to deal with the company's debts.

The stricken company, which employs 20,000 workers across Britain, said crunch talks over the weekend aimed at driving down debt and shoring up its balance sheet had failed to result in the "short term financial support" it needed to continue trading while a deal was reached.

Bradford East MP Imran Hussain tweeted: “We must remember that it is thousands of workers, who had nothing to do with its decisions but who will nevertheless suffer the consequences, who will be hit hardest.”

Carillion is a key supplier to the Government and has contracts in the rail industry, education and NHS.

In recent years Carillion has been responsible for the new entrance to Leeds station, which was opened in 2016.

The firm was also recently awarded the first phase contract to construct the £115m East Leeds orbital route.

Philip Green, chairman of Carillion, said: "This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years.

"Over recent months huge efforts have been made to restructure Carillion to deliver its sustainable future and the board is very grateful for the huge efforts made by Keith Cochrane, our executive team and many others who have worked tirelessly over this period.

"In recent days however, we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision. We understand that HM Government will be providing the necessary funding required by the Official Receiver to maintain the public services carried on by Carillion staff, subcontractors and suppliers."

In 2010 Bradford Council paid out £825,000 to the firm in a settlement after a long-running dispute over the collapse of a £1.2 billion deal to run 600 key Council buildings.

Carillion had been named as the preferred bidder in the deal, but the scheme was suspended in 2005 on the day the contract was expected to have been signed off by senior councillors.

There were anonymous allegations the bidding process had been skewed in Carillion's favour. The whole scheme was later abandoned in 2007 without the allegations being substantiated.

The Council later settled with the building services company after it tried to recover its lost profits from the deal.