Local authorities are today looking at contingency plans for schemes after social housing company Connaught went into administration.

The company had fallen into financial difficulties, and yesterday KPMG was appointed as its administrator. Leeds, Norwich and other city councils that have contracts with the FTSE 250 company are now being forced to look towards “contingency plans” if they want to proceed with housing and school schemes.

A Leeds City Council spokesman said it was watching the situation “very closely and with concern”.

Connaught currently provides its school building maintenance, defective property repairs and maintenance and repairs for two housing associations.

“We were well aware of the emerging situation and this announcement from the company has not been unexpected.

“It has given us time to develop detailed contingency plans – these are now in place and ready to begin should Connaught be officially put into administration.

“We are committed to minimising the disruption to housing and school projects across the city because of this, and people should not worry that work will not go ahead because of it.”

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