Work on a major housing development that could see a market town grow by up to 1,000 homes has been delayed amid funding fears.

The Fakenham Urban Extension scheme was expected to begin on September 9 with the building of a roundabout on the A148 being the first leg of the development. 

However, plans for work to start were thrown into doubt after North Norfolk District Council's (NNDC) request for additional funding was taken into review by the new Labour government.

NNDC has said it will not start work until additional funding has been secured and a provisional revised date has now been set for October 7.

The district council asked the government for an additional £1.4m to cover the increased costs of the roundabout towards the end of 2023.

First phase of the project was building the A148 roundabout at the top of Water Moor Lane.First phase of the project is building the A148 roundabout at the top of Water Moor Lane. (Image: Google Maps)
The roundabout's price tag was initially £1.8m, which had been secured by North Norfolk District Council and Norfolk County Council, but inflation caused the cost to soar. 

Work on the rest of the development taking place off Rudham Stile Lane cannot move forward until the roundabout has been built.

Christopher Cushing, who represents Fakenham's Lancaster North ward on NNDC, said in his report to Fakenham's town council: "It seems the NNDC has given up hope the government will this year provide any extra funding it had requested from them."

Christopher Cushing has said Norfolk County Council is ready to start building the roundabout in October, subject to funding approval.Christopher Cushing has said Norfolk County Council is ready to start building the roundabout in October, subject to funding approval. (Image: North Norfolk District Council)
Another option to meet the new start date is that Trinity College Cambridge (TCC), which owns the land earmarked for the 950 homes, could provide the additional money needed to compensate the budget shortfall. 

However, this is also subject to ongoing negotiations.

Mr Cushing added that NNDC officers are working closely with Norfolk County Council highways department and other interested parties to try to get work under way on the new roundabout.

He said: "They are up against tight timescales in September to get the funding and planning application in place."

A North Norfolk District Council spokesman said: “The Fakenham Urban Extension remains a key development for North Norfolk and an important part of our housing growth plans.

"We remain keen to see it come to fruition successfully and committed to working with the various partners and stakeholders involved in the project to that end.”