THE council's capital programme is being revised because of the financial crisis, the Guardian understands.

The programme, which outlines buildings and facilities to be built for the long-term benefit of the borough over the next three financial years, is jeopardised because returns from the sales of buildings to fund it will be less than originally anticipated due to the current economic climate.

The programme was due to be scrutinised by councillors last Thursday, but was withdrawn from the agenda shortly before the meeting.

A revised programme will come before leading councillors next month.

The latest news could mean the latest Arcade site redevelopment plan, in Walthamstow, and plans for "super" care homes are downgraded or scrapped.

Cllr Matt Davis, Conservative group leader and scrutiny committee member, said: "The effect on the taxpayer depends on the decisions that are taken on how to deal with this.

"It may mean we are not going to get some of the things we were promised."

But deputy leader John Macklin downplayed talk of a crisis, describing it as a "sensible re-evaluation" in the light of the economic climate.

He said: "Many things have changed, capital receipts have altered, but the price of land the council is buying has also gone down."

Cllr Keith Rayner, cabinet member for finance, said: "Future estimates have been revised and, like any prudent council, we are currently reviewing our capital programme."