Contractor Carillion has confirmed this week that it plans to axe 1,500 positions in direct response to the government’s proposal to half the feed-in tariff rate. The move comes after the firm put 4,500 people on statutory notice of redundancy last month pending its redundancy consultation, reported Construction News.
It stated that this latest development comes despite the European Commission saying that the UK government could face legal action over its plans to reduce FiT rates if it is found to threaten progress towards the UK meeting the EU’s targets on renewable energy.
Last April Carillion spent £300M buying out solar services firm Eaga in the hope of the profiting form the potential market in installing solar technologies, in light of the government’s Green Deal. As it is, Building reported that Richard Howson, Carillion chief operating officer, confirmed this meant that any future work will be outsourced to local SME’s. He also said that the government’s decision to halve the feed-in tariff rate means that Carillion would be halting its offer of free installation for housing associations ‘in the short and medium term,’ reported Building.
Register for free or sign in to continue reading
This is not a paywall. Registration allows us to enhance your experience across Construction Management and ensure we deliver you quality editorial content.
Registering also means you can manage your own CPDs, comments, newsletter sign-ups and privacy settings.
