DEVELOPERS behind a massive housing plan for the long-derelict site of York’s old sugar beet factory say they cannot afford to build any affordable homes on the site.

British Sugar is in a long-running wrangle with City of York Council planners over the land, and in January a planning inspectorate hearing on the 1,100 homes plan is due to start.

Now it has emerged that council planners are fighting the landowner’s plans in part because British Sugar says it should not have to include a single “affordable” home - for rent or discounted sale - on the 42 hectare site.

City of York’s planning committee is due to meet this evening, and officials have advised councillors to refuse the application because of affordable housing, among other concerns, as part of the process leading up to the hearing.

Some progress has been made on the site in recent months - land decontamination and access road plans have both been approved - and the council and British Sugar say they are still working with each other to solve their disagreements.

But documents produced for the planning committee show just how much has not been agreed - including affordable housing.

The committee report explains that the developers are arguing that their costs are too high to make affordable housing viable. Council staff disagree, and are waiting for the district valuer to look at the costs.

The document also shows a shortfall in what the developers are offering for community facilities, open space and new schools, as well as disagreements over roads and infrastructure.

Mike Slater, assistant director for planning at City of York Council, said: “Although officers’ objections to the scheme have, through negotiation, been reduced, there are still a number of important matters that remain unresolved and we are actively working with the landowner regarding them.

“We are continuing to work closely with the landowner in seeking to achieve a planning outcome to deliver much-needed housing for the city which complies with our planning policies on issues such as open space and affordable housing.”

A British Sugar spokesman said they still hope to get final planning approval for their plans by early next year at the latest.

The spokesman said they were aware of all the reasons planning officers have put forward to turn down the scheme, and were still talking to the authority.

“British Sugar is continuing to work closely with City of York Council on these final outstanding matters, and very much hopes to be in a position to secure the outline permission from the council later this year or very early next,” he added.

“This will enable British Sugar to progress with the redevelopment of this key site to provide the much needed new homes, and supporting community facilities, for the city.

“Significant progress has been made in recent months, and British Sugar remains committed to the sustainable redevelopment of the site.”