A housing developer whose new Okus project could bring hundreds of young families into the area has been told to stump up more cash for local schools.

Fairview New Homes wants permission to build 349 houses on the site of the Okus Industrial Estate.

The houses would be a mixture of two-bed, three-bed and four-bed homes, plus a number of one- and two-bed apartments.

The proposed development would also feature a shop, an open space, landscaping and car parking. As part of the deal it offered £80,000 towards the costs of extra classroom space and teachers.

But councillors believe the money is not nearly enough to compensate the local education authority for the additional pressure it will be placed under once the families have moved into the new houses. At last night's planning meeting, members deferred the application for the second time.

It is understood developers are meeting council officers next week in an attempt to thrash out a more acceptable proposal.

They may have to reach deeply into their pockets: Councillor Fionuala Foley (Con, Old Town and Lawn) said they should be paying as much as £1.5 million towards education costs.

The lead member for Swindon Services said she was deeply concerned about the sum the developers had put on the table and said the council had to take a tougher approach with developers to ensure Swindon got a good deal.

"I don't feel that their contributions are adequate when you consider the number of dwellings they're thinking of building," she said.

"I have no problem with building on this land and welcome the residential development but we do have to make sure we are getting the best deal for the people of Swindon."

Coun Foley pointed out that Lethbridge Primary School and Commonweal Secondary School were full, and asked: "Where are the children going to go?"

Okus Area Residents' Association said: "A considerable number of nursery, primary, and secondary school children will need to be catered for starting in about 2006."

Fairview New Homes was unavailable for comment.

Andy Tate