Council housing tenants will not go without vital repairs because of a building company’s cash crisis, housing chiefs have pledged.

Merton Priory Homes (MPH), the association that took over Merton’s council housing this year, said its contingency plans would protect residents after the collapse of contractor Connaught - which had been responsible for repairs at MPH properties.

Rival building companies Mears and Morgan Sindall took over the struggling business after it went into administration last week - but said there would be job losses as a result of the move, and did not reveal what would happen to sub-contractors that used to be employed by Connaught.

A spokesman for MPH said it had been monitoring Connaught’s financial situation closely.

They said: “We have contractors on standby to deliver a repairs service for us, if we need it. Our residents should still report repairs through the usual number.”

A spokesman for Merton Council, which also used Connaught’s services, said it had back-up contractors in place to deal with any problems.