Squirrel in peril?

Ignoring my neighbour's dire warnings about the damage that squirrels can do if they get into a roof I've started to hand peanuts, bits of dessicated coconut etc., to one that visits my garden.
What worries me however is that the bold little fellow shows no sign of being bothered by a stray cat who uses the blanketed kennel I've put outside as his base to return to when he's hungry and tired. The squirrel has been within a foot or two of puss, who I've noticed has given it the evil eye but has made no attempt to attack it.
Will a cat attack a squirrel and harm it, I wonder? If so I'll have to stop encouraging it as it's showing no fear of either me or the cat.

 

Yes a cat will and can attack and hurt/kill a squirel, though it may get hurt in so doing. Squirels pack a nasty bite.

Please don't ignore your neighbours warnings about squirrels in the roof space. After 18 years of no problem and a squirrel visiting the birdfeeders - I had one enter my roof space. Apparently they come in for water in the cold weather as well as shelter. One of my roof rafters was knawed almost half through, amongst other damage, thankfully just a corner one supporting one tile, so no replacement required. But had to have the catchers in to trap and remove it. I do not wish a repeat

 

Thanks Fran
Seems like there are very good reasons for discouraging this cute little visitor. What a shame!