PLANS to regenerate huge swathes of Normanton in a multi-million-pound revamp have been delayed – with work to improve Osmaston taking priority.

Derby City Council has said funding difficulties have meant a £60m scheme to revitalise Normanton with fresh housing and landscaping has been put on hold.

The council said the scheme was delayed due to "the current economic climate" and is instead prioritising a £500m vision to transform Osmaston.

The Normanton proposals involved building 100 new houses, road improvements to ease rush-hour jams and landscaping areas of public parkland.

The houses would have been a mixture of rented properties, private housing and low-cost homes.

The plans, which were first revealed in the Derby Telegraph in April, also included the construction of a library and adult learning centre.

But the council has been unable to buy key locations in the area.

Community leader Shokat Lal said: "The health needs in Normanton are some of the most urgent in the city. For this plan to be delayed is very disappointing. This area needs help and support now."

Local businessman and community volunteer Balwant Bubber, 53, of St Thomas Road, said: "I love Normanton and have lived here for years and I can see more need to spend money in Normanton than Osmaston.

"The council should stick to their plans. They should be considering Normanton as their priority."

Jaz Rai, 39 a volunteer who helps out at the Sikh temple in Stanhope Street, said: "It's not fair at all. If you asked anyone, they would put Normanton ahead of Osmaston."

Councillor Bob Troup, cabinet member for housing and the environment, said: "The recession has meant that the plans for the area are being reviewed and no consultation is likely to take place until a decision has been made on what is achievable given the current economic climate."

He said it was unlikely any work would begin in Normanton until at least 2012.

The money for the project would come from the Government's Homes and Communities Agency.

But Mr Troup said that, because of the recession, the agency was not giving out as much money.

He said: "It has meant we have to prioritise the schemes we want to take forward. As it stands, the council's first priority is the Osmaston regeneration. This is top of our list."

The Osmaston project would build a school, housing, medical facilities and parks.

Mr Troup said: "The reason we have prioritised Osmaston is because the Rolls-Royce sites there became available for development and at the same time the housing in that area needs a lot of money. These opportunities are there for the taking.

"This does not mean to say that all developments or potential developments have been suspended in Normanton.

"Some of the suggestions may be revisited in the future but at this point it has been agreed that the council concentrates on what its long-term priorities are."

But Mr Lal, secretary of Normanton's Pakistani Community Centre and chairman of Derby's Muslim Forum, who lives in Madeley Street, said "The infrastructure of Normanton is crumbling. Some housing is very poor quality."

Conservative councillor Amar Nath was disappointed, saying: "When it was initially proposed I was so happy to say that Normanton could get a £60m investment. Now it looks unlikely. But, whatever happens, housing is needed in the area."

Mr Troup said the original plan relied on the purchase of the New Normanton Mills site in Stanhope Street and the former Normanton Hotel pub, in Lower Dale Road.

The New Normanton Mills site would have been a potential site for a proposed £10m-plus health centre. But the council has faced difficulties in getting it for the right price.

Mr Troup said the proposed health centre could still go ahead, though, and would be built in the Rose Hill area.

The site being looked at is Oakvale House in Oak Street.

The project would be a joint venture between the city council, NHS Derby City and Southern Derbyshire LIFTCo Partnership, which helped fund and plan the development of Village Community Medical Centre in Normanton and Ashbourne Community Hospital and Health Centre.

A NHS Derby City spokesman said: "We are looking at developing services in the area but discussions are at an early stage and we have no details as yet."

Owners of the old Normanton Hotel, Nationwide Healthcare, have permission to convert the building into five flats with two shops underneath. Work started some time ago.

Plans also include building a decking area and demolishing warehouse buildings, subject to a separate application.