Victoria Atkins MP has promised to contact NHS England amid claims the town is missing out on thousands of pounds for vital improvements.
Ms Atkins said it was ‘deeply concerning’ - if reports that the NHS had cut back on applications for Section 106 funding were correct.
Section 106 agreements effectively ‘tie’ developers into paying money towards improvements to local infra structure - including health services.
Stuart Attwood, a leading figure in calls to stop Horncastle being ‘swamped’ by new housing, says the NHS has stopped applying for money from developments of fewer than 50 homes.
Mr Attwood points out four developments of 40 homes each could add more pressure on local services than one estate of 100 homes.
Speaking at town council meeting, Mr Attwood described the decision as ‘scandalous’ and said Horncastle - and other towns - were missing out on hundreds of thousands of pounds.
Ms Atkins said: “I have spoken to the NHS and will be contacting them again. I am deeply concerned.”