Two large-scale construction projects at Dounreay have become victims of the Government funding squeeze on the UK's nuclear clean-up programme.

Plans have been shelved for the design of the proposed new waste plants, near Thurso, causing major concern in the local building trade.

The postponement of the projects will cost jobs, though management claims it should have a 'minimal' effect on the site's permanent workforce.

The move has concerned union and trade representatives who were looking forward to a mini-construction boom.

He added: "We were counting on this work to help regenerate the construction trade.

"We believed it would lay a stable base for industry and re-employ some of those who have been laid off as result of the recession. It's very disappointing and we'll be fighting to ensure as few jobs as possible are lost as a result of this."

The plants, needed to treat and store intermediate-level waste, were expected to have required a combined labour force of 400 over a six-year period.

A third major construction project, the new dump for solid low-level waste, is due to get under way, as scheduled, in Spring 2011 and will employ 100 workers.

The news comes on the heels of the recent announcement from the Nuclear Decommissioning Authority that the site will have to operate on an annual budget of up to £150 million.

The plans for the three projects - costing an estimated £400 million - were based on a projected budget of £220 million.

Dounreay union spokesman John Deighan said the postponement of the two plants is a major blow.