RESIDENTS have been given “false hope” after town leaders discovered a shortfall in planning money promised to the area.

Community Representatives Party chairman David Smith hit out at Harwich Town Council for not spending nearly £300,000 in Section 106 money.

Big developers pay Section 106 cash to Tendring to improve areas which may be affected by their building projects.

More than half the cash is already committed to upgrading outside spaces but Tendring Council said about £132,000 had not been earmarked to be spent.

On closer inspection, Harwich Town Council revealed the actual figure they could spend was only £27,652.79 because most of the available money can only be spent on affordable housing.

Councillor Jo Henderson said: “We were told to make a shopping list but we can’t. There is nowhere near what they are saying. These blasé figures have raised false hopes."