FEARS that a developer responsible for creating 300 homes in Cirencester could pull out amid news of cutting 40percent of its workforce have been relieved.

Last week, developer Redrow announced that it would be making job cuts due to the downturn in the property market.

The company has recently started work in Kingshill, Burford Road, Cirencester.

CDC Beeches Ward Cllr Peter Braidwood said it looked positive the building work would continue.

"The general feeling at CDC is that they want to get stuck into it, Redrow is pushing ahead with the plans."

"They are a business and they're not going to build where they're not going to make any money," Cllr Braidwood added. "We need the houses, particularly the lower cost houses."

"All indications are that they still think they can sell homes in the Cotswolds. But things with the property market can change quickly."

Rachael Davies, spokesperson for Redrow Homes South West, reassured that the national job cuts would have minimal impact on the Cirencester development, she said: "We remain committed to the project and commencement on site will be assessed relative to the current market conditions."