HERTFORDSHIRE is facing a massive shortfall of more than £100 million because of new guidelines for housing developments, according to worried councillors.

The county council has set out how it wants developers to provide financial compensation for the additional population of future housing projects.

But providers of social and affordable homes such as housing associations will be given massive discounts on what private developers will have to pay.

According to a detailed analysis from Lib Dem councillor Malcolm Cowan, who represents Handside and Peartree in Welwyn Garden City, by 2021, when extra 86,000 homes will be built in the county, the authority will have lost out on £105 million.

He said: "This will place a massive strain on the county. The Tory cabinet has rubber stamped the numbers the officers have come up with for the development tariff.

"We are asking for the formulas to be subject to scrutiny by other councillors to make sure we are treating everyone fairly and correctly, and that we do not miss out on such a large amount of money that would help build the facilities that will be needed."

The county council's requirements will be given to district and borough councils so financial contributions can be incorporated when planning applications are granted.

The money will be needed so the council can provide the schools, social services and other services such as libraries the expanded population will need.

Rejecting the argument that social housing tenants would come from elsewhere in the county, he said many of the residents of the 29,000 proposed affordable homes would come from London or other areas. Although all counties are drawing up such guidelines, few give such discounts for social housing.

Liberal Democrat group leader Chris White said: "We must go through this with a fine toothcomb - there is too much at stake not to."

Council spokesman Josie Judge said: "The Hertfordshire Planning Obligation Advice and Information document was approved back in January, following stakeholder consultation, and it is a guide setting out what the county council would seek as part of any planning application that would have an impact on any infrastructure or services that we deliver.

"Lower contributions would be sought from registered social landlords in order to allow more affordable housing to be developed. We are unable to verify the figures given by Councillor Cowan."