Plans for Scotland�s first flatpack village in Drumchapel have been shelved, according to Ikea. The Swedish furniture giant planned to build around 40 BoKlok homes as part of a £200m New Neighbourhood Development, launched last year.

MARISA DUFFY and MARIANNE TAYLOR

Plans for Scotland's first flatpack village in Drumchapel have been shelved, according to Ikea.

The Swedish furniture giant planned to build around 40 BoKlok homes as part of a £200m New Neighbourhood Development, launched last year.

However, Ikea spokesman Neil Shaefer said yesterday: "Unfortunately, because of the current economic situation, we have no plans to build any further BoKlok developments at this stage."

He admitted that while plans to build more homes had fallen victim to the credit crunch, the Glasgow development had been ruled out prior to the suspension of further building. "Drumchapel has for years been mooted as a possibility for a BoKlok development, but I don't think this will happen now," he said. "There was a long-running issue with the land and who owned it, but it would be for the city council to say why it was stopped rather than us."

The overall project, which will create 1200 homes over five years, is a collaboration between Glasgow City Council and New City Vision, the regeneration partnership of Laing O'Rourke and Bishop Loch Developments (Scotland).

It came as the first occupants moved into the BoKlok village in Gateshead. The idea behind BoKlok - Swedish for smart living - was to provide well-designed, energy-efficient homes for first-time buyers earning between £15,000 and £35,000.

The homes, characterised by a flexible, open-plan layout, high ceilings and large windows, are already very popular in Scandinavia.

A spokeswoman for Glasgow City Council said no planning application had ever been received. "It would be up to the developer, New City Vision, to submit a planning application for these houses," she said.

New City Vision said it had no knowledge that the plan had been cancelled. A spokeswoman said negotiations with Ikea were ongoing.

Despite the setback, Ikea said it was still keen to build in Scotland. "When the economic situation improves we would want to build in Glasgow or Edinburgh," said Mr Shaefer. "What we need is land to be able to build on and obviously we need to be able to get land at a good price to make it affordable."

Meanwhile, the firm has recalled some Iris and Alvine window blinds after a baby in the US was strangled. The one-year-old girl, from Connecticut, died when she became entangled in the inner cord.

Ikea said anyone who bought the blinds between July 2005 and June this year should fit an extra cord stop - which will be supplied by the company - to cut the risk.

It said affected blinds, which were sold in every UK store, had the date stamp 0823 or less printed on a white label attached to the blind.

Customers can return the blinds to their nearest store or call the firm on 0845 358 3364 to receive a free repair kit.

More than 670,000 of the blinds were sold in the US, but Ikea refused to say how many had been bought in the UK.