Ambitious plans to transform Cricklewood Sidings with shops, homes and a massive leisure park have come under fire from the freight industry.

The £3billion scheme for one of the borough's most run-down areas has, so far, drawn almost universal applause from businesses and residents' groups. But this week the Freight Transport Association (FTA), which has 11,000 members, said moving the Cricklewood rail freight terminal to a smaller site would restrict future growth.

Under the government's Ten Year Plan for Transport, it is committed to delivering at least 75 per cent more rail freight movements.

Sarah Watkins, FTA's rail policy manager, described the Cricklewood scheme as a key test of the central and local government's commitment to this target. In a letter to Barnet Council, she wrote: "We understand the proposals currently under consideration by the borough would result in the movement of the rail freight activity to part of the site where growth would be completely constrained.

"We do not believe the current proposals are consistent with national, regional or local government transport and planning guidance, neither do we believe they are in the interests of efficient and better management of freight movement in the south-east."

Cricklewood Redevelopment Ltd, who are behind the plans, hit back, saying proposals would actually increase rail freight capacity. Development manager Jonathan Joseph said: "This site is not quite as constrained as the FTA might imagine. We have to strike a balance between the needs of the freight industry on one side and the opinions of residents on the other."