SWANSEA council is being "held to ransom" by developers who have said they can no longer afford to include affordable housing in a major new riverside scheme, according to the leader of the local authority.
David Phillips said the change of heart over the Bernard Hastie industrial site off New Cut Road was not acceptable.
The plans, first put forward four years ago, were for 136 houses and flats, with 15 per cent designated as "affordable housing", and a £540,000 contribution from the developer towards building the Morfa Distributor Road.
But the number of homes has now been reduced to 92, and developers PMG say they cannot afford to include the affordable housing element, while also proposing to cut the amount of cash for the road.
Speaking a Swansea Council planning committee meeting, councillor Phillips said: "Having announced that we want to build the road we are being held to ransom; we are being bounced into this for commercial reasons.
"They now come along and say they cannot afford it — well I am sorry, but that is not acceptable."
Council officers had recommended approval of the revised project — but councillors rejected that advice and voted instead to ask planning staff to go back to the developers and renegotiate what is know as the "section 106 agreement" to include the affordable housing.