MILLIONS of pounds earmarked to kick-start a major colliery redevelopment may no longer be available due to Government spending cuts.

The Homes and Communities Agency agreed in principal to give £8 million to "pump-prime" plans for 1,120 homes, industrial space and a country park at the former Gedling Colliery site.

The money was to buy land needed to build the Gedling Access Road and secure planning permission for the scheme.

Now funding has been thrown into doubt until the Government makes it clear how much money will be available to the agency.

It is also believed there is not enough private-sector interest to allow the rest of the scheme to progress without millions of pounds of public money.

Gedling MP Vernon Coaker, who has campaigned for the scheme to get the green light, said it was "ludicrous" to consider withdrawing funding.

He said: "The money will never be made available up front because the scheme is dependent on the homes being built on the pit site with the private sector.

"The private sector won't build the houses without the access road because it won't get planning permission.

"So we need this £8 million to buy the land for the road and get it through the planning process. It's ludicrous to pull it."

Mr Coaker said he would raise the issue in the House of Commons by asking a parliamentary question.

Rick Wilson, chairman of the Gedling Village Preservation Society, said there was frustration at the lack of progress since the pit closed in 1991.

He said: "We feel abandoned. It's disappointing. Traffic is going to get worse and the colliery is going to get more of a wasteland."

A funding decision had been expected by the agency in the coalition's first Budget.

However, a spokesman said it was still unclear whether the £8 million agreement would be made legally binding, particularly in light of a lack of private-sector interest.

Margaret Allen, Homes and Communities Agency director, said the agency was working with East Midlands Development Agency (Emda) and Gedling Borough and Notts County councils to find a way to make the scheme viable.

She said: "The agency agreed to an initial £8 million to pump-prime the scheme and bring it to point of delivery.

"The current market means private sector investment is not likely and the scheme cannot be delivered without up-front public sector costs."

Councillor Bob Tait, portfolio holder for strategic planning at the borough council, said: "The Gedling Colliery site remains a priority for this council and we are very keen to see the site developed."

He said the council had two planning applications for the site from Emda, for the redevelopment and an access road.

He said: "In this climate there are bound to be funding difficulties but the site is vital for us in delivering housing."