Outgoing Labour councillors warned the move would jeopardise the government's £69m investment in the Newcastle Gateshead pathfinder, which they say was based on the delivery of Going for Growth.
The Lib Dems are considering an immediate moratorium on using pathfinder money to buy homes for demolition. The council has already cleared 643 homes.
Ruth Robson, former Labour cabinet member for housing and regeneration, said: "If they stop, all the effort will have been wasted. The residents we've worked with will have had their dreams shattered.
"The pathfinder money was predicated on Going for Growth."
But Greg Stone, the Lib Dem housing spokesperson who is in line for the cabinet member post, said: "Going for Growth ripped the heart out of communities.
"It was unveiled with great fanfare but it's failed to deliver.
"We'll work with communities to deliver regeneration."
He said he would only want to demolish homes as an absolute last resort, and would be meeting residents in the next two weeks to find a way forward.
The Newcastle Gateshead pathfinder team and the ODPM were not available for comment.
Source
Housing Today
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