Firm loses bail hostel contract

Clearsprings was paid 10.3m over the last two years to run more than 200 properties in England and Wales. It houses prisoners released early who have nowhere else to live and suspects awaiting trial. The contract was not renewed and a three-year deal signed with a charity, Stonham, which houses vulnerable adults.

Ministers threatened to terminate the contract with Clearsprings earlier this year after a resident in one hostel was brutally murdered. They ordered a review of standards after a judge criticised controls at a hostel in Stockton, Teesside, following the death of a resident Mark Bradshaw, 24, who was repeatedly stabbed by two other men.

Residents groups also objected after it was revealed the company did not have to tell local councillors or the public when it was planning a new hostel.