HUNDREDS of North East jobs hung in the balance after the Government said it would appeal a ruling that would have boosted solar panel firms.

The Court of Appeal ruled yesterday that Energy Secretary Chris Huhne was wrong to cut subsidies for the panels before consultation had finished.

But Mr Huhne said the Government would seek leave to appeal to the Supreme Court.

The delay could damage firms in the region, including Newcastle’s Carillion, formerly Eaga, which has already shed 800 jobs nationwide.

Consumers will not know whether they will benefit from the feed-in tariffs (FITs) subsidies until the legal wrangle is resolved.

David Hunt, a director of Eco Environments, a solar panel installation company that employs 53 people in Newcastle and Carlisle, said jobs were at risk.

“Whilst there is uncertainty around the tariff for the domestic market, consumers are not willing to take the risk of installation and therefore installation businesses are suffering a lack of business.

“Certainly there is the potential for the loss of staff and a loss of growth.

“We’ve got a small team in Newcastle which we were looking to grow but we certainly can’t do that under the circumstances.”