Southwark accidentally leaks confidential information

Southwark Council accidentally published the details of its controversial agreement with property giant Lend Lease over the £1.5bn regeneration of the Heygate estate.

Southwark council accidentally leaked some confidential information about the regeneration of the Heygate on their website. They’d attempted to publish a redacted version of an agreement that was part of the compulsory purchase proceedings against the last tenants living in the estate.

Most of the contract was redacted, but a group of tenants realised that they could access the full text by copying and pasting it into a new document. The incident revealed that the council would only get £55m from the 22-acre site, knowing that it has already spent £43.5m on the project so far, and is expected to spend £6.6m more before the final demolition. As a comparison, the neighbouring Oakmayne/Tribeca Square development site, which is only 1.5 acre, got sold in 2011 for £40m.

The figure also sounds incredibly low, considering that the council had initially planned an estimated gross development value of £990m for the Elephant & Castle site. On the other hand, Lend Lease are predicted to make a £194m profit before any overage profit is shared.

The agreement, signed in July 2010, also showed that the council will be breaching its very own social housing policy by only including 79 social rented homes in the new development, on a total number of 2,535 houses. The council leader, Peter John, had previously guaranteed that the plans would involve 25 per cent of affordable housing, which already was 10 per cent less than it should have been.

The move had already been criticised by the local Liberal Democrats, who issued a statement on Monday attacking the Labour council’s apparent inability to “get a good deal for local residents or council taxpayers”. They also added that the blunder had raised “big questions about the low price Lend Lease bought the land for, and why the developers of Southwark's biggest development are being allowed to make their profits at the expense of desperately needed local housing at social or affordable rents.”

These worries echo the controversy around the demolition of two housing estates in Earl's Court by the Hammersmith & Fulham council as part of a larger regeneration scheme. With nearly 800 homes, the West Kensigton and Gibbs Green estates could be sold to property giant Capco and demolished despite the objection of the majority of the residents. It was also revealed last month that Stephen Greenhalgh, former council leader of Hammersmith & Fulham, had promised to put some residents on a "VIP early movers list" if they accepted to publicly back the project. Now the deputy mayor for policing and crime, he is being investigated by the IPCC.

Also under investigation is Peter John, after having failed to declare one of the two tickets for the Olympics opening ceremony, costing £1,600 each, that had been given to him by Lend Lease.

The Australian company, which was contracted to build the Olympic Games Village, has been under scrutiny earlier this year, as it settled over allegations of fraud and agreed to pay fines of $56m for over-billing authorities on public contracts in New York. It is not known how much profit they made from the Olympics, but its profits rose by 28 per cent in 2012 - when it was built – though we know that the project cost the taxpayer £275m in total.

The regeneration plans it has been working on with Southwark have been heavily criticised by local residents, who are accusing the company and the council of trying to gentrify the area, and force people with low incomes to move away from central London. The protests have been going on for over five years - when the estate started being emptied - and are part of a larger battle for the conservation of social housing in the (relative) centre of the capital.  The latest controversy around demolition plans arose in the last year in the Carpenters, close to the Olympics site. Newham council and its leader, Robin Wales, want to demolish the estate to make space for a new UCL campus; some of the tenants are attempting to resist the plans, arguing that the changes equate to social cleansing.

This article has been updated to remove innaccuracies concerning the Earl's Court development.

The Heygate estate has been awaiting demolition since 2008 [Photo: Marie Le Conte]

Marie le Conte is a freelance journalist.

Grant Shapps on the campaign trail. Photo: Getty
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Grant Shapps resigns over Tory youth wing bullying scandal

The minister, formerly party chairman, has resigned over allegations of bullying and blackmail made against a Tory activist. 

Grant Shapps, who was a key figure in the Tory general election campaign, has resigned following allegations about a bullying scandal among Conservative activists.

Shapps was formerly party chairman, but was demoted to international development minister after May. His formal statement is expected shortly.

The resignation follows lurid claims about bullying and blackmail among Tory activists. One, Mark Clarke, has been accused of putting pressure on a fellow activist who complained about his behaviour to withdraw the allegation. The complainant, Elliot Johnson, later killed himself.

The junior Treasury minister Robert Halfon also revealed that he had an affair with a young activist after being warned that Clarke planned to blackmail him over the relationship. Former Tory chair Sayeedi Warsi says that she was targeted by Clarke on Twitter, where he tried to portray her as an anti-semite. 

Shapps appointed Mark Clarke to run RoadTrip 2015, where young Tory activists toured key marginals on a bus before the general election. 

Today, the Guardian published an emotional interview with the parents of 21-year-old Elliot Johnson, the activist who killed himself, in which they called for Shapps to consider his position. Ray Johnson also spoke to BBC's Newsnight:


The Johnson family claimed that Shapps and co-chair Andrew Feldman had failed to act on complaints made against Clarke. Feldman says he did not hear of the bullying claims until August. 

Asked about the case at a conference in Malta, David Cameron pointedly refused to offer Shapps his full backing, saying a statement would be released. “I think it is important that on the tragic case that took place that the coroner’s inquiry is allowed to proceed properly," he added. “I feel deeply for his parents, It is an appalling loss to suffer and that is why it is so important there is a proper coroner’s inquiry. In terms of what the Conservative party should do, there should be and there is a proper inquiry that asks all the questions as people come forward. That will take place. It is a tragic loss of a talented young life and it is not something any parent should go through and I feel for them deeply.” 

Mark Clarke denies any wrongdoing.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.