Construction: Building jobs to go as spending cut

The Scunthorpe-based company expects turnover to fall this year and in response plans to reduce its workforce.

A spokesman said: "The reduction in capital spending by the Government, on top of the recession, which has deeply affected the construction sector, has and will continue to impact on our turnover.

"In reviewing levels of business it is necessary to align our numbers of personnel. Sadly, this will result in a number of redundancies and we have begun the appropriate consultation processes."

He added that the company was disappointed but had to act in the light of reduced workload.

Around 400 people work in Clugston's construction business, which

accounts for around 70 per cent of group turnover. It also has logistics and property development businesses.