DEVELOPERS could be allowed to defer paying millions in vital infrastructure costs to Barnet Council in an attempt to kick-start stalling regeneration projects in the borough.

Under the current rules, firms agree to pay millions of pounds through so-called Section 106 agreements to the authority to mitigate the impact of new developments, providing money for roads, schools and health services.

But the recession has delayed projects across the borough prompting the council to consider allowing developers to delay payment.

For applications submitted this year, the delay could be up to two years, while for projects already in the pipeline, delays could be accepted if developers have trouble selling or letting properties.

If agreed, the initiative would run to 2011, allowing Barratt Homes to delay payments associated with the Stonegrove and Spur Road regeneration scheme, where 680 homes are due to be demolished and replaced by 937 new units, built in phases, by 2013.

If developers take up the offer, they would be required to work with the council to find ways to provide “new opportunities” for the borough's economy and workers.

Councillor Melvin Cohen, cabinet member for planning and environmental protection, said: "The global recession is affecting almost everyone in one way or another, and housing developers more than most, as finance becomes harder to come by.

"As a responsible council that listens to its partners and residents, we have come up with some guidance notes we hope will help to both boost the local economy and attract developers to this borough.”

But Councillor Jim Tierney, planning spokesman for the opposition Labour group, said much of what had been proposed was already being done on the major projects.

He said: "On the Stonegrove development the only way we could start the present phase was to extend the Section 106 trigger dates, and the council has also
re-phased the West Hendon estate Section 106, yet on that particular estate they still haven’t laid a brick.

"Agreements to provide local apprenticeships are also in place on other developments too.

"But what’s really worrying, is that this proposal appears to be loading the dice more and more against delivering affordable housing at a time when the housing need in this borough is exceeding crisis levels.”

Residents have been invited to respond to the proposals through the council's public consultation by the end of July.

To read about the proposals in more detail and to comment on them, visit barnet.gov.uk/responding-to-recession-s106-agreements.htm