MILLIONS of pounds expected to be set aside by the developer behind Barnsley’s biggest-ever housing estate has resulted in the sum being deemed ‘unviable’ in the latest twist in an almost four-year-long row.

Site MU1, which separates communities such as Barugh Green, Higham and Pogmoor along the M1 corridor, is the subject of plans to build 1,560 homes.

It is the largest site in Barnsley Council’s so-called local plan a blueprint which outlines future housing and business areas and has long been sought for development by Sterling Strata Barnsley West Limited, a consortium which submitted its planning application in August 2021.

The Chronicle can now reveal that a so-called Section 106 agreement which includes cash set aside by developers for loss of amenity was set to yield just over £23.3m for the giant 185-acre site, as well as an ‘affordable housing’ element consisting of up to 250 homes.

However, a newly-released financial viability assessment carried out by independent firm Continuum has dismissed the sum as prohibitive and it’s anticipated the developer will now pursue a significantly reduced fee as well as the scrapping of affordable housing.

Assessors say it is due to projections being made that the estate will cost more than £1.1m per hectare to deliver.

A report said: “The total Section 106 ask for the site is £23,369,905, which equates to £14,891 per unit.

“This is a very high contribution ask per unit, with Continuum typically seeing asks at around £5,000 to £8,000 per unit in the Yorkshire market.

“Overall, the sensitivity supports the conclusion that the scheme cannot viably support its Section 106 contributions including affordable housing.

“In line with national planning guidance and relevant guidance it has been demonstrated that the proposed scheme cannot bear a contribution towards affordable housing or other Section 106 contributions.

“The assessment made in this report has been done so objectively and impartially and is considered to robustly justify the maximum planning obligations contribution that can be borne by the proposed subject scheme.”

A new 420-place primary school, warehouses for business use, new roads and two roundabouts which are almost complete remain part of the plan, although the report suggests a more suitable sum would be £11.55m.

It would allow the consortium a prospective 12.15 per cent profit of the entire site’s £536m gross domestic value.

A spokesperson from campaign group Keep It Green whose members have been battling against the proposal told the Chronicle: “The current planning applications for the proposed MU1 development have

been with the council for over three years now and the developers have been actively promoting the scheme for more than ten years.

“It is almost incredulous therefore, that at this late stage, they now suddenly find that a requirement of the council’s local plan that has been known about for several years (Policy H7) renders the scheme unviable.

“Could it be that the developers are trying to force the council’s hand to drop the affordable housing and avoid their S106 financial contribution?

“If their attempt to browbeat the council proves successful, could further economies, which would further water down the so-called ‘benefits’ of the development, lie in store?”

Barnsley Council said its officers are reviewing the financial viability document.

Coun Robert Frost, cabinet spokesperson for regeneration and culture, added: “A planning application was submitted for MU1 which is still under consideration.

“The applicants have submitted their viability assessment to the council this considers the value generated by a development and the costs associated with its delivery.

“The council will review the viability assessment and establish a well-informed position before deciding on the next steps.

“The application will be presented to the planning regulatory board once all remaining outstanding matters have been resolved.”

A spokesperson from the developer reiterated a commitment to seeing the development through.

“We have been working closely with the council throughout the planning process to determine the financial viability of the scheme,” they said.

“We remain committed to delivering our ambitions at Barnsley West.”