PLANS for a 3,000-capacity campsite in a residential area during the Olympics have collapsed after a row over costs.

The London Camping Company (LCC) revealed to the Guardian earlier this year that it had signed an initial agreement with the council to run the site at Ive Farm in Leyton.

But with just weeks to go until the Olympics the firm now claims it has withdrawn from the deal after the council refused to lower its asking price of £1million to rent the site.

LCC head Noel Doyle said he had been in negotiations for weeks with the authority amid concerns the campsite would not be viable unless costs were cut.

He said rival Olympic campsites were charging far less than expected for pitches which put potential profit at Ive Farm in doubt.

Residents living near the site, who organised a campaign against the proposals, welcomed the announcement.

Louise Brooker, 48, of Tupelo Road, said: "I'm so glad. It's really good news.

"We were all very concerned about the potential disruption. The hundreds of people who signed our petition just goes to show the strength of feeling.

"Of course we didn't want the campsite but it's such a waste to have a sports ground so close to the Olympic site derelict and locked."

Mr Doyle said he thought elements in the council had been "greedy" for demanding so much money for the site.

He said: "We offered them close to half a million pounds but they said £1million or nothing.

"We are disappointed and it is a shame. The council has missed out on hundreds of thousands of pounds which could've been used to help regenerate Ive Farm afterwards.

"I think with the other campsite at Low Hall (in Walthamstow) the company there already handed over money to the council. But our deal was only an initial agreement and no money changed hands."

The council previously said that profit from campsites such as Low Hall would be used to pay the estimated £1.5million bill for its 'Big 6' series of events held to celebrate the Olympics.

Residents have not been consulted about any Olympic campsites and the authority has never publicly confirmed or denied the existence of the proposals for Ive Farm.

The Guardian is awaiting a comment from the council about its plans for the site.

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