UNITE has demanded action to back hundreds of workers left without pay or jobs after the collapse of the Stewart Milne Group.

The Aberdeen-based housebuilder went into administration on Monday leaving houses half-built, and 217 workers redundant.

In a statement, company founder Stewart Milne blamed “the bank,” Lloyds Banking Group, which refused two bids for the sale of the business.

He said: “I tried everything I could to find a way to achieve a better outcome.”

Unite industrial officer John Clark called the lack of consultation with workers “potentially illegal.”

He said the union would pursue a “protective award” at a tribunal to recover workers’ lost pay and challenged politicians to act.

“It’s vital that the Scottish government and the local authorities in which the company has a presence work with Unite to explore how we can find suitable alternative employment for the workers including on public contracts as a priority,” Mr Clark said.

A Scottish government spokesperson said: “Ministers have already spoken with administrators and made clear to them that all possible support should be offered to affected staff, suppliers and home buyers.”

Lloyds Banking Group said that it had provided “multiple maturity extensions to the borrowing” during “several years of support and forbearance.”