The warning comes from councillors who voted to approve plans for 10,800 new homes to be built in the town by 2026.

But the government may still decide to impose up to 5,000 additional homes in order to meet national housing targets.

The issue was discussed at a meeting of the council's cabinet on Monday.

Speaking at the meeting the council's leader Craig Humphrey said: "We should only deliver houses that we can afford.

"If the government decides to build these additional homes here that's something we can not control.

"But I will say this to them - they are in for one hell of a fight if they impose houses on this borough which we can not deliver."

The council voted to approve plans for 10,800 new homes to be built alongside 40,000 square metres of retail floorspace as part of its Preferred Option Core Strategy. That paper will published for public consultation next month.

As reported by The Advertiser on August 7, the proposed locations of the new homes were unveiled earlier this month by the council.

They intend to put the majority of the new homes - 6,200 - on the former BT mast site near Hillmorton.

A further 1,300 are planned for the land west of Leicester Road parallel to the new Coton Meadows housing estate.

But Councillor Leigh Hunt (Con, Avon and Swift) said: "I feel that we have a duty to protect our existing communities.

"For example we must protect The Locks area in Hillmorton because it's a conservation area and I would like to see a buffer zone put around it.

"I would also urge everyone in Rugby to fully engage in the consultation process."