Interserve feels the pinch after Budget

The support services company Interserve said two of its schemes had fallen prey to cuts after the Government scaled back a £55bn school building fund this week.

The firm's £150m project in St Helens, Merseyside, under the Building Schools for the Future programme was cancelled, while a £280m scheme at Sandwell, West Midlands, was scaled back. While its BSF work in Leeds is safe, Reading-based Interserve predicted "challenging" conditions in the public sector, which accounts for a third of its profits. Although orders fell from £6.5bn to £6bn in the first half, it said it would meet expectations for the full year.