A LEADING councillor has said plans to build two new "super" care homes are still being discussed - despite them being removed from the authority's capital programme for 2009/10.

The authority planned to close all council-run care homes, including Walton House, in Chingford Mount Road, and use the proceeds to fund two new “super” care homes.

Because the amount that can be recouped from sales of land and buildings has plummeted, the council has had to revise its plans - meaning it will no longer have enough cash to fund the new homes.

Cllr Liz Phillips, Lib Dem cabinet member for older people, said: “The care homes project team is continuing to work towards a solution which meets the needs of older people and creates an affordable project.

“The plans to build two new care homes are still being discussed and any rumours saying otherwise are untrue.

“The global recession has affected local authorities across the country and Waltham Forest has been no exception.

"Because of the economic downturn the council’s capital receipts have been lower than expected.

"In light of this, future estimates have been revised and, like any prudent council, we have reviewed our capital programme.

“The council’s plans for care home reprovision is still very much a work in progress.

"It is a major piece of work that the council is committed to getting right and this means that we will take into account affordability, value for money and what is ultimately best for our residents.

“No final decisions have been made, but the plans are simply not yet ready to put into the capital programme for 2009/10.”

There are still nine residents left in Walton House, most of whom are on waiting lists to be moved into new homes.

Labour and Lib Dem members on the council's overview and management scrutiny committee last week refused to back a Conservative motion calling for cabinet to re-open Walton House.