Connaught Yorkshire job-loss toll hits 300

Mears, a social housing repairs provider, will take over a contract with Yorkshire Metropolitan Housing Association as well as seven other contracts around the country.

The total number of redundancies at Connaught rose to 1,100 yesterday after administrator KPMG announced a further 400 job losses on top of last week's 700 redundancies.

But Mears said it hopes to re-employ some 600 of the 1,100 staff who have been made redundant. It is not yet clear how many of the 300 Yorkshire job losses will be saved.

Construction group Morgan Sindall announced a deal on Friday to take on the majority of contracts at Connaught Partnerships, the social housing arm, saving 2,500 jobs.

Connaught, which carried out essential maintenance and repairs for local authorities and other social housing groups, called in KPMG last week after blaming Government spending cuts for contract work deferrals.

KPMG was brought in as administrator for Connaught's main company as well as subsidiaries Leeds-based Connaught Partnerships and Connaught Technical Solutions.

The total number of Connaught staff under the appointment of KPMG was 4,200, of whom 1,100 have now been made redundant.

Morgan Sindall's affordable housing division, Lovell Partnerships, has taken on the bulk of Connaught Partnerships' contracts.

KPMG could not confirm how much Mears paid for the eight contracts.

Yesterday, administrators at KPMG said they were in urgent negotiations on two contracts with Norwich City Council. KPMG is also providing assistance to the customers of four remaining contracts in transferring services to alternative providers.