Liberal Democrats ask for school clarity after ISG go bust

Liberal Democrat Councillors are asking for clarity over the future of the redevelopment of Hempland and Tang Hall Schools following the collapse of construction company ISG.

The company, which holds more than £1bn worth of government contracts, fell into administration last week and 2,200 workers were made redundant with immediate effect.

It has been reported that accounts from the end of 2022 shows that over £700million is owed to creditors and now won’t be paid following the firm’s liquidation.

Councillor Nigel Ayre, Leader of the York Liberal Democrat Group said:

“This is an extremely worrying development, we want to express concern for the thousands of employees who have lost their jobs over night and those further down the supply chain whose jobs will now be under threat.

“It is specifically worrying in York as two schools were set to be rebuilt by ISG. Parents and residents will need urgent answers as to what the future of these two schools will be now that the original constructor no longer exists.

“We hope that this will just be a case of finding a new constructor and that urgent help is being given to these two schools to ensure that any delay can be managed.

“We are also asking for clarity on how much money has already been paid to ISG and what the financial implications on the rebuilding projects are.”