A planned housing development could bring with it a Government grant of around £400,000 to improve the city, a meeting heard.

A plan to build 66 homes and four shops on land off Legrams Lane, Bradford, was given the green light at a meeting of the regulatory and appeals committee yesterday.

As part of the plan, developer Dadibhias Limited had been expected to contribute around half a million pounds to improve schools, green spaces and highways in the area in what is called a Section 106 Agreement.

But the firm originally said it could not afford to pay any money and has since only upped its offer to £75,000, saying the development would barely make a profit.

Councillor Roger L’Amie (Con, Baildon) said he was concerned this cash would not go very far, when a housing development could last around 50 to 100 years.

But the meeting heard that the Government was currently handing local councils £6,000 for every completed house and £7,000 for every completed affordable home to invest in infrastructure.

This was because developers were struggling for cash in the economic downturn, councillors were told.

Coun Imran Khan (Lab, Bowling and Barkerend) said new homes and shops would enhance the area.

He said: “It was a derelict area for a long, long time.”