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Olympics borough claims it can't afford to house poor residents

The London borough that will host the Olympic games is trying to send its poorest residents to other parts of the country because it say it cannot afford to house them.

Robin Wales, the mayor of Newham in east London, said Tuesday that a new U.K. government policy limiting the amount of housing subsidies provided to poor residents means that many people can no longer afford to live there.

The newly built Olympic stadium, a large new shopping mall and public parks have regenerated parts of Newham and pushed up rents.

The government has capped the subsidy at a maximum of $646 a week.

Wales says he has written to local authorities in other parts of the country to see if they can house some of the 32,000 families who need somewhere to live.