YORK'S low land values and high house prices make it a hugely attractive prospect to investors, but political fluctuations can have an immediate affect on their plans, a council committee heard yesterday.

The Economic and City Development Overview and Scrutiny Committee met yesterday evening and to discuss a confidential report which warned of problems that could arise if investors did not trust York's political direction.

Sarah Tanburn, the interim director of city and environmental services, told the committee that within days of the Labour group losing overall control of the council in a dramatic full council meeting in November, by investors worried about their plans.

With the Local Plan's progress halted when opponents then out-voted the ruling Labour groups, many were concerned that their financial interests in the city could be affected if the plan was changed in the new political landscape.

The chairman, Cllr Andrew Waller, had asked Ms Tanburn answer the committee's questions after her report set out problems facing biggest projects facing York, and the resources needed to bring them to fruition.

She told the committee it was worth remembering the council's strong record in delivering major projects, like the recently opened Park&Ride sites, but that growth in the city would have to be met by infrastructure improvements.

Several Reinvigorate York projects - including the Exhibition Square work and improvements for Fossgate - were paused last summer to make sure they would not disrupt the road network too badly, and to give more time to design the scheme and consult on it, Ms Tanburn added.

At the same meeting, the transport cabinet member Cllr David Levene told members that contractors were still working on contact lists for all those fined during the Lendal Bridge closure, but letters inviting them to apply for refund should be issued in February.

He repeated calls for agreement from other political parties to set up the planned Congestion Commission, saying the parties now know the proposals for the Commission which are due before a cabinet meeting in early February.