Plans to construct a new theatre opposite Theatre Royal Stratford East are on hold.
The new space, named The Red Crate, is planned as a 'sister' venue to the National Theatre's distinctive Temporary Theatre (formerly known as The Shed). It had been due to open later this year.
But now members of Newham council have stalled on their commitment to a £100,000 feasibility study, saying they need more time to consider the projects, to which the council would commit £3million of a total budget of £4.5million.
TRSE artistic director Kerry Michael said: "Newham Council is under pressure to deliver important services with diminishing budgets so it's right that they debate their spending."
A spokesman for Newham Council added: "Councillors were clear in the face of stringent cuts, that any future funding for this project would need to provide significant benefits for the local economy and residents."
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