PLANS to build hundreds of new homes for servicemen and their families will not be affected by the collapse of the construction company tasked to build them, it was announced yesterday.

Construction giant Carillion said yesterday it has had “no choice” but to immediately go into compulsory liquidation, after talks failed to tackle the company’s £900million debt.

The company had previously been awarded a £1.1billion contract from the Ministry of Defence to support the Army Basing Programme, which will see the return of troops from Germany to Wiltshire by 2020.

As part of the contract, Carillion has been working collaboratively with construction management business Aspire Defence, which are the building contractor directly responsible for delivering the new army homes across the Salisbury Plain area including in Tidworth.

A spokesman for Aspire, which has about 100 Carillion staff employed on the Army Basing Programme, said construction works “continue as normal” despite Carillion going into insolvency. He continued to say the firm “did not expect any disruption to payment of staff and suppliers”, adding: “Contingency plans have been put into action and contractual discussions are underway.”

Ex-defence minister and South West Wiltshire MP Andrew Murrison said it was “vital that the army’s rebasing is not frustrated by Carillion’s collapse”.

He said: “Carillion is very heavily involved with building in Aldershot and around Salisbury Plain to accommodate the army returning from Germany.

“Ministers need to say how, in the circumstances, they will ensure the seamless relocation of the army, mainly to Wiltshire and Hampshire.”

A joint venture with Carillion, CarrillionAmey is also responsible for managing 50,000 married quarters across the UK.

Following the announcement that Carillion would go into liquidation, the government said it would be paying to maintain the public services carried on by Carillion staff, subcontractors and suppliers.

Cabinet Office Minister David Lidington said: “For clarity - all employees should keep coming to work, you will continue to get paid.

“Staff that are engaged on public sector contracts still have important work to do.”