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.

Photo: Getty
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Ken Livingstone says publicly what many are saying privately: tomorrow belongs to John McDonnell

The Shadow Chancellor has emerged as a frontrunner should another Labour leadership election happen. 

“It would be John.” Ken Livingstone, one of Jeremy Corbyn’s most vocal allies in the media, has said publicly what many are saying privately: if something does happen to Corbyn, or should he choose to step down, place your bets on John McDonnell. Livingstone, speaking to Russia Today, said that if Corbyn were "pushed under a bus", John McDonnell, the shadow chancellor, would be the preferred candidate to replace him.

Even among the Labour leader’s allies, speculation is rife as to if the Islington North MP will lead the party into the 2020 election. Corbyn would be 71 in 2020 – the oldest candidate for Prime Minister since Clement Attlee lost the 1955 election aged 72.

While Corbyn is said to be enjoying the role at present, he still resents the intrusion of much of the press and dislikes many of the duties of the party leader. McDonnell, however, has impressed even some critics with his increasingly polished TV performances and has wowed a few sceptical donors. One big donor, who was thinking of pulling their money, confided that a one-on-one chat with the shadow chancellor had left them feeling much happier than a similar chat with Ed Miliband.

The issue of the succession is widely discussed on the left. For many, having waited decades to achieve a position of power, pinning their hopes on the health of one man would be unforgivably foolish. One historically-minded trade union official points out that Hugh Gaitskell, at 56, and John Smith, at 55, were 10 and 11 years younger than Corbyn when they died. In 1994, the right was ready and had two natural successors in the shape of Tony Blair and Gordon Brown in place. In 1963, the right was unprepared and lost the leadership to Harold Wilson, from the party's centre. "If something happens, or he just decides to call it a day, [we have to make sure] it will be '94 not '63," they observed.

While McDonnell is just two years younger than Corbyn, his closest ally in politics and a close personal friend, he is seen by some as considerably more vigorous. His increasingly frequent outings on television have seen him emerge as one of the most adept media performers from the Labour left, and he has won internal plaudits for his recent tussles with George Osborne over the tax bill.

The left’s hopes of securing a non-Corbyn candidate on the ballot have been boosted in recent weeks. The parliamentary Labour party’s successful attempt to boot Steve Rotheram off the party’s ruling NEC, while superficially a victory for the party’s Corbynsceptics, revealed that the numbers are still there for a candidate of the left to make the ballot. 30 MPs voted to keep Rotheram in place, with many MPs from the left of the party, including McDonnell, Corbyn, Diane Abbott and John Trickett, abstaining.

The ballot threshold has risen due to a little-noticed rule change, agreed over the summer, to give members of the European Parliament equal rights with members of the Westminster Parliament. However, Labour’s MEPs are more leftwing, on the whole, than the party in Westminster . In addition, party members vote on the order that Labour MEPs appear on the party list, increasing (or decreasing) their chances of being re-elected, making them more likely to be susceptible to an organised campaign to secure a place for a leftwinger on the ballot.

That makes it – in the views of many key players – incredibly likely that the necessary 51 nominations to secure a place on the ballot are well within reach for the left, particularly if by-election selections in Ogmore, where the sitting MP, is standing down to run for the Welsh Assembly, and Sheffield Brightside, where Harry Harpham has died, return candidates from the party’s left.

McDonnell’s rivals on the left of the party are believed to have fallen short for one reason or another. Clive Lewis, who many party activists believe could provide Corbynism without the historical baggage of the man himself, is unlikely to be able to secure the nominations necessary to make the ballot.

Any left candidate’s route to the ballot paper runs through the 2015 intake, who are on the whole more leftwing than their predecessors. But Lewis has alienated many of his potential allies, with his antics in the 2015 intake’s WhatsApp group a sore point for many. “He has brought too much politics into it,” complained one MP who is also on the left of the party. (The group is usually used for blowing off steam and arranging social events.)

Lisa Nandy, who is from the soft left rather than the left of the party, is widely believed to be in the running also, despite her ruling out any leadership ambitions in a recent interview with the New Statesman.However, she would represent a break from the Corbynite approach, albeit a more leftwing one than Dan Jarvis or Hilary Benn.

Local party chairs in no doubt that the shadow chancellor is profiling should another leadership election arise. One constituency chair noted to the New Statesman that: “you could tell who was going for it [last time], because they were desperate to speak [at events]”. Tom Watson, Caroline Flint, Chuka Umunna, Yvette Cooper, Andy Burnham and Liz Kendall all visited local parties across the country in preparation for their election bids in 2015.

Now, speaking to local party activists, four names are mentioned more than any other: Dan Jarvis, currently on the backbenches, but in whom the hopes – and the donations – of many who are disillusioned by the current leadership are invested, Gloria De Piero, who is touring the country as part of the party’s voter registration drive, her close ally Jon Ashworth, and John McDonnell.

Another close ally of Corbyn and McDonnell, who worked closely on the leadership election, is in no doubt that the shadow chancellor is gearing up for a run should the need arise.  “You remember when that nice Mr Watson went touring the country? Well, pay attention to John’s movements.”

As for his chances of success, McDonnell may well be even more popular among members than Corbyn himself. He is regularly at or near the top of LabourList's shadow cabinet rankings, and is frequently praised by members. Should he be able to secure the nominations to get on the ballot, an even bigger victory than that secured by Corbyn in September is not out of the question.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog. He usually writes about politics.