Farm Terrace Allotment land could be used for a new primary school in the latest version of the Health Campus scheme, Watford councillors heard last night.

Watford Borough Council development control committee was told Hertfordshire County Council has submitted a formal request the contested allotment land be used to build a new school, after politicians suggested current provision would not accommodate the potential 681 new homes in the Health Campus proposals.

At the meeting the committee approved a further outline application for the controversial Health Campus, after the applicant amended its section 106 agreement to include improvements to busy junctions in Watford and settled on a financial contribution of £4 million to Hertfordshire County Council to help with infrastructure and community costs associated with the extensive development.

A report presented to the committee said: "The applicant has initiated discussions with the County Council in respect of the construction of a school on that part of Farm Terrace Allotment site not covered by the proposed hospital expansion."

It continued: "There is continued uncertainty over the availability of the Farm Terrace Allotment site and consequently the deliverability of a primary school on this site. Whilst the county council has indicated this option as its preference for a new primary school, further work is currently being undertaken by the applicant to explore this option."

As a second option the county council has proposed the borough sell land at Harwoods Adventure Playground in West Watford for a £1 to expand existing primary Laurance Haines.

But Labour councillor Nigel Bell asked if it was a possibility a third site for additional primary education could be found, noting that the new discussion about Farm Terrace was a very recent development in the Health Campus talks.

Liberal Democrat councillor George Derbyshire said: "The county council clearly want the Health Campus to happen and the fact it is prepared to put its hand in its pocket to achieve that is very encouraging."

He added: "This report is a totally different picture to what we considered in September."

In September, the planning committee granted permission to incorporate a business zone as part of the campus with purpose-built premises to support additional employment opportunities in the town.

The outline element of the plan was also passed by the committee, including building up to 681 homes and regenerating the existing Watford Hospital in the next 10 to 15 years.

The plans state 35 per cent of the new homes will be affordable and propose new parks, play spaces in the area, a new public square, cycle paths and safeguarding the expansion of school places at Laurance Haines primary school.