ALLEGATIONS that a Labour councillor told voters her gay election rival was a paedophile were prompted by a leading Liberal Democrat's desire for revenge after losing a safe seat, a court heard today.

On the second day of the trial of Cllr Miranda Grell a transcript of an interview she gave to police in March was read out, during which she admitted referring to Barry Smith's sexuality to Leyton resident Kevin Sorkin.

She also admitted she had said he had a 19-year-old Thai boyfriend.

But she denied saying Mr Smith was a paedophile to four other residents and said she believed senior Lib Dem Cllr Bob Sullivan "bullied" Mr Smith into making the allegations because he was angry at losing the long-term safe seat.

In a late development, the judge will decide tomorrow morning on the future of two of the four charges against Cllr Grell.

Gareth Branston, prosecuting in the case at Waltham Forest Magistrates Court, requested that one of the charges based on evidence given by Kevin Sorkin yesterday, be changed to relate to the testimony of another resident, Caroline Dargan.

Also, following the evidence of Mavroudhis Kounis this morning, it will be decided whether the alleged incident he described happened within 12 months of charges being brought, as legally required.

Mr Kounis earlier told the court that Cllr Grell told him a Liberal Democrat councillor was gay and had a young boyfriend during a canvassing visit, but admitted Mr Smith was not mentioned by name.

Former cabinet member and Walthamstow councillor Simon Wright, who also stood for Labour in Leyton Ward, was called as a prosecution witness.

He confirmed he had spent a lot of time on the campaign trail with Cllr Grell and often listened to conversations she had with residents while canvassing.

Mr Wright, a high profile campaigner on gay rights, said: "I never heard her saying anything about sexual orientation and certainly not paedophilia."

He added that the campaign took a "nasty and aggressive" turn over the issue of Leyton Library.

Nicholas Russell, another Labour candidate who stood in Leyton, told the court he overheard Ms Grell telling two young men that Mr Smith was gay and was offended when she made "homophobic kissing noises" towards Mr Wright when he received a call from his boyfriend.

The defence accused him of making up the claim because he was out for revenge for an official complaint Cllr Grell made against him to the Labour Party over his performance early on in the campaign.

Mr Russell denied this but admitted his relationship with Cllr Grell was tense.

During her police interview in March, Cllr Grell claimed Mr Smith had thought about defecting to Labour and was said to have initially blamed his own party for his election defeat because they "knifed him the back" by bringing in Muslim candidate Naheed Qureshi, who polled the most votes.

"I really think (Mr Smith) has been bullied or pressurised into doing this and I believe Bob Sullivan is part of this," she added.

The trial continues.