HALF of the 2,400 new homes allocated to the Forest of Dean over the next ten years will be built in Lydney, if draft proposals by county planners are approved.

A main site for homes will be the course currently occupied by Lydney Golf Club, whose members are campaigning to stay — against the wishes of the site's owners, Federal Mogul Camshaft Castings (formerly Lydmet).

Coleford, Cinderford and Newent are the other key strategic sites for development in the draft plan. Villages will be expected to take only around 350 of the new homes.

Brian Morgan, district council senior planning officer, told local planners this week that apart from housing, priority must be given to sites which would attract new businesses, and 75 hectares of employment land, mainly at Lydney, would need to be found.

Mr Morgan said the Forest's housing allocation would increase its population by 5,000. There would be around 3,300 new "economically active" residents.

"Our role now is to square the circle by getting new jobs into the district," he added.

Federal Mogul says it will sell the Lydney golf course when the lease expires in 2003.

Managing director Len Bolton this week released a letter he has sent to the district council in which he accuses the "exclusive" golf club of conducting a "provocative" press campaign.

He adds: "Their attitude is totally unjustified. The matter should be decided on proper planning considerations that benefit the wider Lydney community."

Golf club spokesperson Bernard Broadhurst said: "The fight is still on. We are determined to stay on the course."