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Timber group Howardth Timber Group has closed its timber frame factory in Bury St Edmunds with the loss of around 60 jobs .
The factory mainly made timber frames for social housing and blamed the slump in the market on Government cuts to the affordable housing budget.
Some 40 Suffolk employees will remain with the firm continuing to make roof trusses and flooring components for private sector homes.
Nicholas Howarth, managing director of the Howarth Timber Group said: “The Government cuts have really only impacted significantly in 2012 because they were delayed.
“They’ve still got further to go and will run for another two to three years.”
