UPDATE 1-Britain's Carillion collapses as banks refuse to lend it any more money

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LONDON, Jan 15 (Reuters) - British construction and services company Carillion collapsed on Monday when its lenders refused to provide any further financial support, forcing it to enter compulsory liquidation.

The company, which employs 43,000 people including 20,000 in Britain, provides services in defence, education, health and transport. It said the government would provide the necessary funding to maintain the public services carried out by its staff.

"In recent days we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision," Chairman Philip Green said.

Tensions around the 200-year-old company have been ratcheting up for weeks, forcing the government to hold a string of crisis meetings to discuss how they should respond.

One of many private companies to run public services in Britain, Carillion has been hit by costly contract delays and a downturn in new business that prompted a string of profit warnings and a first-half loss of more than 1 billion pounds ($1.4 billion).

Its has debt and liabilities of 1.5 billion pounds. (Reporting by Kate Holton; editing by Guy Faulconbridge)