"We're ... asking for a full investigation into the government conduct of this matter," Labour's business spokeswoman Rebecca Long-Bailey told BBC TV.

"This company issued three profit warnings in the last six months yet despite those profit warnings the government continued to award government contracts to this company."

Long-Bailey said the government had to act quickly to take Carillion's public service contracts back into state control and provide reassurance to the company's 43,000 workers and suppliers.

"We want to make sure the British taxpayer aren't going to lose out because of the actions of the government and this company," she said.

(Reporting by Michael Holden; editing by Guy Faulconbridge)