FEARS have been raised about the future of major developments in York because of possible Government funding cuts.

The Conservative-Liberal Democrat coalition has unveiled plans to scrap regional development agencies (RDAs) such as Yorkshire Forward and replace them with local enterprise partnerships.

The head of City of York Council’s opposition Labour group said the move left a cloud hanging over the York Renaissance Team, established to make major developments such as York Central and York Northwest, where the British Sugar factory once stood, happen and boost the city’s economic prospects, with Yorkshire Forward funding five of its six posts.

The coalition’s policy document suggested partnerships between businesses and councils could replace RDAs, but commerce leaders across the UK have already expressed concerns about whether these would adequately fill the gap.

York’s Labour leader, Coun James Alexander said: “This throws the whole Renaissance project into uncertainty.

“Unfortunately, the Government plans seem not to be sufficiently defined at this stage from a financial point of view, meaning many councils, like York, are left in limbo.

“The Renaissance team is a very welcome addition to efforts in York to address a number of significant issues. The potential loss of these posts could set back major developments like York Central and York Northwest years, and it would be a poor first gesture from a fledgling administration to send this message to York.”

But council leader Andrew Waller, who has welcomed coalition proposals on areas such as reducing the national deficit, creating “green” jobs and freezing council tax for a year, said: “At this stage, Coun Alexander is just speculating, but clearly the massive debt the Labour Government created before it lost office has to be tackled. However, the council remain determined to establish a way forward with York Central and York Northwest and work well with the owners of those sites.”