A VETERAN trader has warned that a ban on house building could hit the economy.

Ken Andrew, a Knutsford trader for 35 years, said shops selling electrical goods, furniture and carpets could all suffer.

"I can see there being an awful lot of job losses," he said.

"If there are few new homes people will not need new carpets so there could be a commercial impact.

"I don't think they have thought this through. It is like trying to dam a river and then seeing what will happen."

Macclesfield Borough Council is expected to agree to ban new developments at a meeting today (Wednesday).

The Government has insisted the local authority limits the number of new homes after it emerged that 4,500 had been built in the borough since 1996.

The borough had expected to reach its limit by 2011.

"This will drive people away," said Mr Andrew, 77.

"Knutsford will become a no-go area because it will force house prices up."

Yesterday (Tuesday) Conservative Clr Sue Kipling said the change could lead to the Tory-controlled council receiving more plans.

She warned that more residents might try to extend their homes instead of moving.

"If they can't buy new houses they are going to expand their properties," she said.

"It puts more pressure on the authority, but the whole idea is to take decisions away from local people."