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The UK's corporate regulatory system is "not fit for purpose" and could be overhauled beneath a Labour authorities, John McDonnell is to say.
In a speech, the shadow chancellor will say there "will be no more Carillion scandals on Labour's watch".
The agency, which employed about 20,000 folks within the UK, collapsed with £1.5bn of money owed in January.
Two MPs' committees stated in a report this week it confirmed regulators have been "toothless".
They additionally referred to as for a potential break-up of the massive 4 audit companies, after they "waved through" the indebted building agency's accounts.
Speaking at a Labour occasion in central London, Mr McDonnell will say that he has commissioned an unbiased evaluation of the UK's corporate auditing and accounting regime, by Prem Sikka, professor of accounting and finance at Sheffield University.
His findings will then be fed into Labour proposals to reform the regulatory system.
Mr McDonnell will say the MPs' report this week "once again highlighted the catastrophic failure and inadequacy of our regulatory system".
Accounting and pensions regulators "have once more failed to do their jobs" he'll say, and the dearth of transparency means "nobody ever seems to be punished for their transgressions".
He will criticise the "regulatory maze"citing 29 regulators for the monetary sector alonefor creating alternatives for "waste, duplication, obfuscation and buck-passing".
"That is why it is essential that we have a crackdown on poor practices in the accounting and auditing industry," he'll say.
"Under the subsequent Labour authorities the massive six companies will not be allowed to proceed to behave like a cartel that stops new market entrants or drive down requirements.
"Otherwise it will further infect the rest of our economy and business community. "
Thousands of individuals misplaced their jobs when Carillion collapsed in January.
It held quite a few public contracts, similar to the upkeep of faculties and prisons, all of which needed to be introduced beneath authorities management, at a value to the taxpayer.
In a damning 100-page report final week, the Work and Pensions and the Business, Energy and Industrial Strategy committees stated:
- The Big Four accountancy companies have been a "cosy club incapable of providing the degree of independent challenge needed"
- Carillion's collapse had uncovered "systemic flaws" in corporate Britain and confirmed regulators have been "toothless"
- "Carillion could happen again, and soon"
But Carillion's former finance director, Richard Adam, stated he rejected the committees' conclusions and objected to quotes within the MPs' report, which he stated had been misattributed to him.
And former chairman Philip Green stated the board had "always strived to act in the interests of the company and all its stakeholders".
Responding to the MPs' report, a KPMG spokesman stated it had performed its audits of Carillion "appropriately", and Ernst & Young stated it was "disappointed that despite all efforts the business was not rescued".
Deloitte stated it was "disappointed" with the committees' conclusions whereas PwC stated it was serving to save "thousands of jobs" because the official receiver.