Hundreds of thousands of pounds intended for improving playgrounds in Sutton was diverted to help cover costs of the controversial Life Centre, it has emerged.

Sutton received a £1.1m Playbuilder grant, which was intended to be spent on 22 open access play areas by the end of this financial year.

Renovations costing £526,000 were made at 11 parks in 2009-10. But the council made the decision to divert £350,000 from 2010-11’s budget to pay for the controversial £8m hi-tech centre, aimed at teaching children life skills and safety.

The council said the money went into the Life Centre budget, which included play facilities such as a climbing wall.

It said the decision was made to put the funding into the flagship £8m education project because it had not yet been earmarked for other projects, and the Government sought to get back funding for play projects not in an advanced stage.

Conservative opposition spokesman on finance Tim Crowley said: “This money was used because finances for the project were not properly managed, at the cost of improving at least five or six playgrounds.”

The Life Centre has been dogged by controversy since its conception, with concerns over its financial management.

Sutton taxpayers, who it was said should pay nothing for the project, were set to foot the bill after all, following a £650,000 shortfall in grants and a lack of bookings by schools.

Councillor John Drage, the council’s finance spokesman, said the council invested more than £1.1m in play schemes in the past three years, and 28 excellent outdoor play areas had been built or refurbished in the past four years.

He said: "When the Playbuilder grant was unring-fenced, the Government sought to retrieve any of the money yet to be committed.

"To ensure Sutton did not lose out, we put forward a case to demonstrate some of the remaining money would be used on the outdoor play schemes at the Life Centre.

"We know how important it is for children to have play and recreation facilities available and that is why we made sure the full amount was spent on children and young people in the borough."