Britain to tighten outsourcing rules in next 12 to 18 months

EDINBURGH, Scotland (Reuters) - Britain is preparing to toughen up contract terms for private companies operating in the public sector over the next 12 to 18 months after the collapse of outsourcing group Carillion earlier this year, a source familiar with the plans said on Monday.

The government, which awards 200 billion pounds of public contracts to private companies every year, plans to force firms who carry out critical work for government departments to provide a "living will" agreement. That would enable their services to be handed over to another supplier in an emergency.

(Reporting by Elisabeth O'Leary; Editing by Chris Reese)