A DEVELOPER plans to take its fight to build £10million worth of flats to the Government unless councillors agree to reduce its £140,000 contribution to schools and community facilities.

Inner London Group wants to build 97 flats on the site of a block of former factories in 257 to 285 Sutton Road, Southend.

The scheme was approved by councillors earlier this year, but the developer now says it cannot afford to hand over the £140,000 contribution it agreed to pay for education community projects.

The company has warned Southend Council that, unless it agrees to drop the requirement to pay out the cash, it will take its case to the planning inspectors.

The company refused to comment. The controversy has been met with despair by residents living near the eyesore site, who said they just wanted something done to improve it.

Robin Perritt, 47, who lives in nearby Redstock Road, said: “It’s turning into a bit of a joke.

“First we were going to have the development, then we weren’t, now it looks like we might again.

“I don’t know whether the Government would back them, but anything would be a big improvement on how it looks at the moment.”

The company’s proposal to build the flats was backed by councillors in May, but only on the condition it handed over the extra cash payments. The planning permission also included the caveat that 29 of the flats should be “affordable”.

However, the scheme hit the buffers when the company claimed last month the conditions would make the development unprofitable.

A bid to drop the caveats was expected to be rejected by councillors, but the company withdrew the application at the last minute.

It has now submitted a new full application, minus the conditions, because only full applications can be referred to the Government if they are turned down.

The council’s development control committee will make a decision on the application at its meeting tomorrow.