FIVE hundred Redditch jobs have been lost to another new town.

A giant American company snubbed by Redditch Council has taken 500 jobs and its UK headquarters to Milton Keynes.

Sentry Insurance Corpor-ation pulled out of a £5 million office development when councillors opposed the plan.

As Redditch unemployment soars, Sentry's UK headquarters has just opened in Milton Keynes.

The council's criticism in 1975 of the Southcrest office plan was rejected by the government but Sentry chiefs were so upset they pulled out of the project.

The decision was turned down by the planning committee after a 10-nine vote.

Planning committee chairman Horace Shakels said about the decision: "This is one of the most disappointing I have ever experienced.

"With unemployment at its present level I should think many people deeply regret the decision."

But Councillor Adrian Bedford-Smith, who opposed the plans, remained unrepentant.

He said he felt the company would be too big for the town and would bring the wrong kind of jobs.