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Thanks everybody - sorry for late acknowledgement.
I have now revisited the Census records and obtained the actual record sheet. Although the website I used suggests the address was 'Highworth', the actual record is less clear and actually states the address as being in New Swindon, which makes more sense from what you are all saying. Not sure where the Highworth bit comes in, because the name of the street is very difficult to decipher. So, looks like it was in Swindon itself and not the village.
For the benefit of Shed Cat, the ancestor is Thomas Skinner, who I am fairly confident is on the male line of my maternal grandfather. He was 49 in 1861 and employed as an engine turner. He has two working sons, Albert and Joseph, who are employed as Engine fitter and (I think) engine erector - which I assume means engine builder? My great great grandfather was also called John Skinner and was 10 in 1861 - he worked as an engine driver in 1881 and lived right next to the railway in London.
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