PLANS to pump £2.1m of developers’ cash into upgrading an existing school could see overcrowding if hundreds of new homes are built first, a councillor has warned.

Forest planners backed outline permission for 40 new homes in Lydney, on land formerly proposed for a new school, after hearing that extra pupil places can be created by expanding the town’s Severnbank Primary.

The housing scheme off Rodley Manor Way is part of a projected 375-home expansion, which has been boosted by the removal of the Severn Bridge tolls.

Orginally the land targeted for the 40 homes was reserved for a new school to cater for the new population.

But Robert Hitchings Ltd’s latest application proposed that money was instead pumped into creating more school places at Severnbanks, with £524,678 paid when the first 135 homes are occupied, followed by installments totalling up to £2.1m as more houses are built.

Cllr David Wheeler (Green, Newland and Sling) warned last week’s Forest Council planning committee meeting: “A school on site can take in pupils, whereas money sitting at the county council does not necessarily result in extra school places at another primary school some distance away.

“I suspect we cannot refuse this application, but I just don’t think this massive housing development in Lydney is going to get the school places it needs.

“We will get massive overcrowding in primary schools in Lydney unless we do something that says these houses cannot be occupied until the provision of pupil places at Severnbanks is there.”

Cllr Brian Robinson (Con, Longhope and Huntley) queried why the money would be paid after the houses were occupied, leaving the school with no time to prepare for extra pupils.

But councillors gave officers delegated permission to approve the development if all funding conditions are agreed, including 40 per cent affordable housing, by July 31.

To date, 92 new homes have been built.