SOUTH Cheshire Chamber fears a labour shortage in Crewe after plans for nearly 1,000 homes were shelved.

Deputy Prime Minister John Prescott rejected a borough council application to build 460 homes at Leighton west and a further 500 at Coppenhall east in September.

Crewe and Nantwich Borough Council's planning chairman Chris Thorley declared the decision 'the best news of the year.'

He felt the plan included too many houses that would affect the quality of life for people living adjacent at Remer Street and put a burden on the local road network.

But South Cheshire Chamber has voiced concerns the borough's population will not be able to fill the ever-increasing number of jobs being created.

It believes the slow-down in house building will have a detrimental effect on the area's ability to attract skilled workers.

The chamber also feels the borough's capacity to fill new jobs created by the economic developments taking place in Crewe's South East Quadrant will be reduced.

Chief executive John Dunning said: "Despite the recent increases in population within the borough, there is now virtually full employment - employers are currently facing the prospect of a labour shortage.

"The projected labour supply up to 2016 will not keep pace with the projected increase in new jobs created.

"The recent exclusion from the Crewe and Nantwich Local Plan of the proposed additional housing areas at Coppenhall east and Leighton west will exacerbate the problem.

"Crewe and Nantwich already experiences high 'travel-to-work' numbers particularly from and between North Staffordshire and the Congleton areas.

"Any shortfall within the local labour supply as a result of reduced housing provision could put additional pressures on the transport system, which is already under strain."