City Hall has backtracked on its decision not to join an anti-pollution scheme as more than 2,000 new homes remain stuck in the pipeline.
Officials at Norwich City Council have now proposed joining Norfolk Environmental Credits, set up by four other local authorities, despite initially arranging a scheme of its own.
Norfolk Environmental Credits was set up to try and solve the issue of nutrient neutrality - which means councils have to mitigate against harm to the waterways in the Broads when giving permission for new housing developments.
While the council originally decided not to join that scheme, it now plans to sign up because of "increasing reputational damage" as thousands of housing projects remain in limbo.
Norwich City Council, along with other Norfolk authorities, was told in March 2022 it would be blocked from agreeing permission for new homes in the catchment areas of the river Wensum and the Broads because of nutrient neutrality.
These rules were introduced due to concerns that nutrients created by development could get into waterways and harm species. Councils cannot give new housing the go-ahead until measures are shown to be in place to prevent schemes adding pollutants.
South Norfolk Council, Broadland Council, Breckland Council and North Norfolk Council created a joint venture organisation called Norfolk Environmental Credits to try to solve the issue by selling 'credits' to developers, with the money generated used to fund mitigation measures.
Norwich City Council had been part of those discussions, but decided not to join that credit scheme and instead set up one of its own.
However, that scheme - which hinged on retrofitting council properties to offset nutrient impacts of new builds - focused on a limited number of priority sites and left smaller developments stuck in the pipeline.
It had included the 1,100-home Anglia Square site, before developers Weston Homes pulled out of those plans. The council's own former Mile Cross depot, where up to 200 homes are planned, was also covered, as well as the Three Score site at Bowthorpe where nearly 100 are due to be built.
COUNCIL U-TURN
Officials at City Hall have defended the decision not to join Norfolk Environmental Credits sooner due to "concerns about governance arrangements" and the "viability" of the scheme.
However they say these reservations have since been addressed and resolved.
During this time very few developments have been approved in Norwich and there is a backlog of over 2,000 residential applications.
This includes 1,417 homes, 528 student beds, 107 hotel beds, and 16 care home beds.
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"Cabinet will consider the proposal to join Norfolk Environmental Credits Ltd, a joint venture between several local authorities in Norfolk, giving us the chance to sign up to a scheme that can help us get more than 2,000 homes built across Norwich."
City Hall officials have warned that action needs to be taken as frustration grows among developers whose projects have been left behind.
They said: "A solution needs to be found that meets local requirements given the increasing reputation damage being caused to the council.
"Joining this scheme, which has member authorities across Norfolk that have been significantly affected by nutrient neutrality, is considered the most efficient and effective way of enabling mitigation to be delivered whilst supporting the delivery of development plans in the area."
Councillors will meet to discuss whether to proceed with this decision on October 16.
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