A PLANNING application which could pave the way for up to 170 homes to be built off Onslow Road has been withdrawn.

The move, by Gloucester Land Company, follows talks between the Govern-ment and Forest of Dean District Council which could reduce the scale of the proposed development.

Residents in Onslow Road are fighting the scheme and a number attended Monday's Newent Town Council meeting.

Despite the withdrawal of plans, residents were warned "not to drop your guard" by Coun Roger Beard, amid expectations that a further attempt to gain planning permission will be made.

Crucial to the future will be the shape of the district council's local plan, which allows for 170 homes on the Onslow Road site.

The Government has baulked at large scale developments - including a massive one near Lydney - outside major urban centres like Gloucester and Cheltenham. Its decision to block the plan has resulted in impasse that has lasted for months.

This week, Coun Will Windsor Clive, leader of the council's Conservative group, confirmed a compromise was being sought.

This would see the local plan approved for what's proposed up to 2008 but no further. A total of 85 homes are pencilled in for Onslow Road in that time.