Last night (Tuesday) Basildon District Council was expected to vote to have the St Christopher's Centre at Dale Farm bulldozed because it flouts planning regulations.
But families at the site, Europe's biggest traveller camp, told the Gazette that because the centre was funded through a controversial £12,000 grant from Essex County Council it is owned by the government.
Travellers' spokesman Gratton Puxon said: "I am absolutely certain of it. We would have to apply to the owners of St Christopher's to have it taken down and because of where the funding came from the owners are the Government. Presumably if it were taken down it would be damaged and it is not our building.
"We have been told in the past that the St Christopher's Centre would not be singled out for demolition but it looks like it is going to be.
"It is proving such a good resource at the moment – about 50 children, who can't go to school because they are bullied, are learning leadership skills and are having IT classes.
"The building is also used for prayer meetings every Tuesday."
But the leader of Basildon District Council Malcolm Buckley scotched suggestions that the centre was owned by central government.
He said: "The building is owned by the travellers themselves. They were given a grant and went out and bought it themselves, there is no question about it.
"The other issue is that any enforcement notice would be served on the land, not the actual building and to my knowledge the Government doesn't own the land.
"This is just the latest attempt to embarrass the council."
●At last night's meeting, councillors were also due to vote on the future of an empty traveller pitch at Hovefields in Wickford.
However, major parts of the meeting were due to be held in secret with officers worried they could release sensitive information after they were criticised by the local government ombudsman Tony Redmond.
A report was released in July stating that the council had been found guilty of maladministration and should pay three travellers a total of £300 each after they released details of their medical conditions and their children's educational needs.
But on Thursday the council's appeal and general purposes committee declined the proposal and agreed to send the travellers an apology instead.