The BBC reported that the Liberal Democrat leaders of Torbay, Teignbridge and North Devon Councils have written to Michael Gove for help.

The leader of Torbay Council said the company’s position could “significantly impact on thousands of jobs and businesses in the South West”.

Councillor Steve Darling said the Levelling Up Secretary “must step in to stop this engine of regeneration from collapsing and sending the South West’s economy in to reverse”.

Rescue hopes for the contractor are fading as a mass exodus of staff is underway.

The Enquirer understands a deal for the Mi-Space business is still possible with a potential buyer also looking at the Devon and Cornwall businesses.

Midas has filed a notice of intention to appoint an administrator while directors battle to save the business.