The planning system would not cope if the government granted councils in northern England money to renew dilapidated housing.
This was the message from housing experts ahead of next week's comprehensive spending review, in which it is predicted the Treasury will sanction the proposed 10-year housing renewal fund.

A source based in Leeds said that planning strategies in the North would act as a barrier to housing market renewal. This was because they do not take ailing housing markets into account.

Paul Langford, assistant director of housing at Leeds council, said: "Is any of it going to cope? Construction, planning and the like is a big concern for us all."

Langford said there were also concerns about the role of regional development agency Yorkshire Forward in providing adequate housing alongside new business developments.

"Yorkshire Forward could be a far more significant player in pushing housing forward than they have been in the past," Langford said.

"All sides need to come forward and use the forum more effectively. At present, the links haven't been made at high enough levels."

A spokesman for Yorkshire Forward responded angrily: "It's unfair to criticise us as we don't have direct responsibility for housing.

"Our regional economic strategy is designed to work closely with regional planning guidance, which includes housing targets."