A housebuilder has agreed to pay Fife Council more than £580,000 after getting permission for 295 homes at Spencerfield.

Taylor Wimpey will also ensure that 25 per cent of the units on the Inverkeithing site are affordable homes after the Scottish Government approved the controversial plans.

Fife Council had refused planning permission but the firm appealed to the Directorate for Planning and Environmental Appeals and Scottish reporter Michael Cunliffe said in December he was "minded" to allow the appeal and grant planning permission.

He confirmed this position in a final ruling last month and the council and Taylor Wimpey have now reached a legal agreement on developer contributions.

As well as ensuring that 25 per cent of the homes are affordable homes – likely to be 74 houses – they will pay £399,600 as a 'strategic transport contribution' and £184,000 as a 'road works contribution'.

The latter will go towards relocating speed limit signs, a new toucan crossing at Hillend Road, new bus stops and shelters, upgrading traffic lights at A921 / Hillend Road junction and extending the right turn lane on the A921.

Pauline Mills, land and planning director for Taylor Wimpey East Scotland, said: "Following constructive discussions with Fife Council, we are pleased to confirm that the Section 75 agreement has been registered and the reporter appointed by Scottish ministers granted planning permission in principle for our development at Spencerfield in Inverkeithing last month.

“We will now work closely with Fife Council and the local community to bring forward our detailed development proposals, incorporating all of the reporter’s recommendations."

She added: “Our proposal for Spencerfield will deliver around 295 new homes, of which 25 per cent will be affordable, allowing us to make sure there will be a wide mix of styles to appeal to a range of buyers as well as a range of tenures.

"Our development will also provide a range of economic benefits for the local area including the creation of several hundred new jobs, and it will attract new customers to local businesses.

“In line with our agreement with Fife Council we will also make contributions towards a fund for wider strategic transportation improvements, as well as local traffic improvements and upgrades as necessitated by our development.

“We will continue to keep to keep the local community informed of our progress.”

Spencerfield has long been a controversial issue as previous attempts to gain planning permission were rejected by the council and, initially, the Scottish Government.

The council did not want development on greenbelt land and said there were other brownfield sites in the Inverkeithing area that should be developed instead.

The site was not included in local development plans and residents set up a 'Save Spencerfield' group. The issue was held up by some as an example of what was wrong with the planning system, in that a firm could keep appealing against decisions they didn't like until they got their way.

In December, when the reporter said he was likely to give planning permission, Myrna Venters, of community group Take A Pride In Inverkeithing, said: “The reporter has let people down. People’s voices were not heard nor considered.

“It’s sad that one unelected individual has the right to override people’s opinions because of what they think is right.”

Councillor Gavin Yates had fumed: “It’s a complete usurping of local democracy.

"What’s the point of having a local planning system if it can be so cheaply disregarded?"

And Cllr Alice McGarry had said: “Local people have fought the good fight and it’s been completely unsuccessful. The whole planning system needs to be looked at.

"We have a system where one person can subvert democracy. Enough should be enough.”