The liquidation of Carillion will cost UK taxpayers an estimated £148m, the National Audit Office (NAO) has said, excluding around £2.6bn pension liabilities and losses by the firm's non-government creditors.

The NAO has published its investigation into the Government's handling of the collapse of the infrastructure and outsourcing giant.The Government has largely escaped criticism in the report, although the NAO said it needs to ‘do better' at understanding the financial health of its top suppliers and avoid creating relationships with those that are already weakened.