A DEVELOPER has accused Castle Point Council of reneging on a planning deal made five years ago by demanding £500,000 more than originally agreed.

Homestead was granted permission to build 50 flats in Long Road, Canvey, in 2003, with a proviso that £100,000 be given towards affordable housing in the borough.

But the council now says this is not enough and ten flats in the complex, worth an estimated £600,000, should be handed over and run by a housing association.

While outline planning permission had been given to the project, the paperwork for the application was never completed and it was not until last year that Homestead began to proceed.

The council says because the agreement wasn't legally finalised, the application is still active and must be looked at again in the light of recent changes of policy.

Councillors at a planning committee meeting were told by assistant director of planning Kim Fisher that in today's terms, what amounted to a donation of £2,000 per flat to affordable housing would be considered "derisory".

But Michael Baker, on behalf of the developer, said there could be legal proceedings to challenge the decision.

He said: "It is grossly unfair to alter the whole basis of planning approval. This may constitute an abuse of power."

While most councillors approved the changes, Norman Smith (Con, Boyce Ward) questioned whether the developer had been fairly treated.

In addition to the extra flats, the council says the application must now face scrutiny by the Environment Agency because it is in an area considered at high risk of flooding.