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An east London council has shrugged off comments by a senior Greenwich councillor that appeared to accuse it of “financial mismanagement” last week, wrongly claiming that it had been placed in special measures.
Majid Rahman, the cabinet member for planning, singled out the financial affairs of Labour-run Newham at a meeting about plans to sell the Greenwich Equestrian Centre and Green Garth, a house next to Shrewsbury House Community Centre in Shooters Hill.
The equestrian centre was built by Greenwich Council and opened by Princess Anne as an Olympic legacy project in 2013. But its operator, Kent-based Hadlow College, went bust six years later. The centre was transferred to North Kent College, which pulled out in July.
Greenwich now intends to sell the site – and Green Garth – to help plug a £33 million hole in its finances.
A number of speakers at the meeting last Wednesday accused Greenwich, also run by Labour, of abandoning its Olympic legacy and pointed to facilities from London 2012 still standing in Newham.
One also referred to an equestrian centre in Beckton.
Rahman said that many of the facilities were not Newham’s responsibility and added: “The 2012 legacy was mentioned and Newham was mentioned as a council which has kind of really supported some of the activities.
“But I think Newham as a council is not a very good example, simply because they’re in special measures because of financial mismanagement and it’s not a route that we want to take.”
While Newham is in talks with the government about extra funding, it is not in “special measures” – a term used to describe when the government sends officials in to take part in the running of a council.
In recent years, Thurrock and Croydon have both been placed in special measures because of financial mismanagement.
It is thought that Rahman may have got Newham confused with neighbouring Tower Hamlets, which is run by the left-wing maverick Lutfur Rahman and his Aspire party. The government sent inspectors into Tower Hamlets two months ago amid concerns about the elected mayor’s leadership.
Newham has been open about its financial problems, which it says are because of the soaring costs of temporary accommodation and social care, an issue which also blights Greenwich.
Last week Newham said it would ask the government for permission to impose a 10 per cent council tax increase and make £32 million of cuts next year.
Greenwich’s own plans for more cuts will be announced in the coming weeks.
Last year, Greenwich and Newham fell out over the running of the Woolwich Foot Tunnel, with Greenwich deputy leader Averil Lekau saying she was frustrated that the east London council was not releasing funds so that the lifts could be repaired. The row quickly passed after the money was found.
Newham Council declined to comment about Rahman’s comment, with an official saying it was happy to accept that he had misspoken.
Greenwich Council was asked if Rahman stood by his comment. It said in a statement: “Due to the previous government’s decade-long austerity campaign, all London councils face significant challenges.
“It is up to us now to make tough decisions to pick up the pieces, and, like Newham, our priority is finding solutions to deliver priority services to residents.”
While Rahman declined the opportunity to correct the record, he was right to say that many of Newham’s Olympic facilities – such as the London Stadium and London Aquatics Centre – are owned by the London Legacy Development Corporation, an arm of City Hall, so are not available to Newham to sell.
Similarly, the site of the Docklands Equestrian Centre, on old gasworks land in Beckton, is owned by the Royal Docks Trust rather than the council.
A formal two-week consultation on the Greenwich Equestrian Centre sale, which is needed because the site is protected open land, is set to begin in the coming weeks.
