Council chiefs last night pledged that Bradford’s City Park will go ahead as planned and on time – despite Yorkshire Forward deferring a £1.3 million payment towards the £24.4m scheme.

A total of £6.7m was promised by the regional development agency towards the flagship project allowing work to begin in February to transform the heart of the city centre.

Yet Yorkshire Forward has now confirmed that it must make cuts of £40m this financial year – and Council bosses told the Telegraph & Argus that despite a funding contract in place, the organisation wants to “defer” payment of £1.3m to the Council – or 20 per cent of its original commitment. It is hoped, however, that this cash can be re-allocated to Bradford as part of next year’s funding and the Council said it will push on with the project and is still committed to its planned summer 2011 opening.

Councillor David Green, the Council’s executive member for regeneration, said that as far as he was aware the remainder of the funding from Yorkshire Forward was safe.

He said: “The scheme is going to go ahead. We have just had this latest Government cut handed to us, but the Council is committed to ensuring that the City Park is completed on time.

“We are going to have to speak in more detail to Yorkshire Forward to secure as much of the promised capital funding as we can get and then, depending on how those discussions go, the Council will have to look closely at how we can ensure it is finished and to the specifications we hoped.”

The Council still hoped to received the deferred amount, perhaps the following financial year, and it could even be from the Treasury, when the regional agency is wound up. The project is being funded by £10 million of the cash the Council received from the sale of Leeds-Bradford International Airport, Yorkshire Forward’s £6.7m and contributions from the Regional Transport Board and the Homes and Communities Agency.

Coun Green would not commit the Council itself to fund the shortfall in the light of an expected 20 per cent cut in the authority’s own budget next year, and a recent announcement on £7m cuts to its budgets in area-based grants.

Mike Cowlam, the Council’s assistant director of regeneration – economic development services, said: “Yorkshire Forward has deferred the payment of almost £1.3 million. This does not mean that this is a cut in funding and we are working hard to see how it will be reallocated.”

Barra Mac Ruairi, the Council’s strategic director for regeneration, confirmed that the Council has a funding contract with Yorkshire Forward and that work would continue on the City Park and without delay.

Terry Hodgkinson, chairman of Yorkshire Forward, said: “The Secretary of State has now confirmed that Yorkshire Forward is to make cuts of £40.27m from its budget of £270m, this year. We will continue to talk with partners as to where the reductions will take place. This will involve both delaying work, and stopping some schemes and initiatives altogether. In some cases, where funds have already been committed, we will need to investigate existing contractual commitments.”