The warning comes as it was revealed that the council received £4 million less than expected from the Scottish Government to fund housebuilding for housing associations.

Barratt Homes said if the funds can’t be found by the council, it wants thirty affordable homes already built in nearby Bucksburn to count toward the Cordyce total instead, the Press and Journal reports.

The plans for the Cordyce school site development were approved in August 2023, with 22 of the homes to be set aside as affordable housing for Grampian Housing Association.

Aberdeen City Council planning chief David Dunne told city councillors yesterday: “The developers have been clear if that off-site option is not available to them, financially they can’t sign up to the scheme.

“In order to start the scheme, the developer needs some security. It is very clear the most financially viable option here is for the affordable housing to be delivered on-site.

“So that is what the developer is seeking to do, it’s in their own interests as well as (Grampian Housing Association’s).”

Mr Dunne added that refusing the off-site housing would put the entire school site redevelopment at risk. He said: “The lack of profit from the site wouldn’t make it viable for their board and they would walk away.”

However, Labour councillor Sandra Macdonald wanted Barratt to press ahead with building the affordable housing at the Cordyce site. She urged that the developer’s off-site back-up to be refused. She stated there is a “real need” for affordable housing in the city and wanted them to stick to the council’s policy.

She commented: “We need to demand that we get more funding from the Scottish Government to deliver on projects like these.

“We have a good track record here in Aberdeen of delivering good-quality social housing. I want to see that continue and ensure that happens by not setting a precedent.”

The Labour member added: “We need to put our foot down now and say no. We need the money so that this development can go ahead as agreed.”

Her calls were defeated by seven votes to two and the flexibility hoped to ensure the former school site can be redeveloped was allowed.