‘Vanity’ of poorest borough with £111m council offices

Newham's Mayor who runs London's poorest borough was accused today of pushing through the decision to spend £111million on new council headquarters.

Newham council says its move to Building 1000 at Newham Dockside brings together 26 of its offices and will save £12million by March as they try to make overall savings of £140million by the end of 2014.

But Alan Craig, former councillor for the Canning Town South ward, accused mayor Sir Robin Wales of pushing the decision through "from the top down" and claimed the move wouldn't have been agreed had councillors known the full cost.

He added: "A vanity project, as it's being called, is the right word for it."

Local government minister Bob Neill accused the council of "a shocking example" and a "reckless spending spree". He added: "These revelations make a mockery of claims from councils that they can't protect front-line services."

The Labour-run council faces 8.9 per cent spending cuts, the deepest of any London borough. Next year it is set to axe up to 1,600 jobs and impose new contracts on 5,000 of its staff.

It receives £100million extra from the Government to help with deprivation.

Sir Robin said the move represented a "perpetual saving, anyone understands that, as they do our nought per cent council tax rise for the last two years.

"Once again the local government minister is bizarrely targeting a council which is actually saving money."