THERE are fears that £30m earmarked for much-needed, affordable new homes in Waltham Forest will be pulled due to Government cuts.

The first council homes in the borough for over 20 years where due to be built on sites currently housing garages using £1.7 million distributed by the Homes and Communities Agency.

The symbolic builds, of 22 new homes in total, were set to usher in a new era of council developments to ease a worsening housing crisis.

Now it is feared £30 million pledged by the former Labour Government to build hundreds of new local authority homes in Waltham Forest may never materialise.

Marie Pye, cabinet member for housing and development, said there are 6,000 families living in overcrowded homes in the borough and she is "really worried" about whether the Government guarantee the money in an emergency budget on June 22.

Cllr Pye said: "We are concerned that the Government has put on hold the Affordable Housing Programme and the Council House Building Programme which totals about £30m of affordable housing.

"We don't know yet what will happen, we've been given no timeline."

Cllr Pye added she was "desperate" for more council housing but fears plans for 300 or 400 homes could be shelved.

She said. "Some of the homes would be shared ownership and for people on low incomes and we've just been told it's on hold until after the Budget."

Cllr Pye is hoping to meet with Richard Blakeway, the London Assembly's housing advisor, within the next week to try and gain assurances.

She is also having discussions with the East London Housing Partnership and housing association partners.

She said: "Everything is uncertain at the moment. If we lose the money, the impact will be on families and the construction industry and jobs."

The Homes and Communities Agency is making savings of £230m to help the Government.

Sir Bob Kerslake, HCA chief executive, said: "Following the Government’s announcement of spending cuts, we have put commitments on all our programmes on hold until further decisions are detailed in the Chancellor’s 50-day budget on 22 June.

"We are unable to comment on individual schemes. We will continue to fund existing commitments pending the June budget and have written to all affected partners, explaining the current situation and the implications."