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CAMDEN LBC CLEAR TO CHALLENGE GUMMER OVER SUBSIDY

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A move by the government to claw back more than£6 million from the London Borough of Camden is to be challenged in...
A move by the government to claw back more than £6 million from the London Borough of Camden is to be challenged in the High Court. Environment secretary, John Gummer, wants to recoup payments of pre-1990 housing subsidy based on the 'deemed debt' inherited by Camden after the abolition of the Greater London Council in 1986. Mr Gummer also wants to recover housing subsidy payments related to interest rate swap transactions which should never have been made. Justice Harrison has now given the council leave to seek judicial review. Camden's solicitor, Amanda Kelly, said after the hearing in London's High Court: 'We are extremely pleased to have been granted leave. At stake is £6.8 million which could be lost to our community. 'We are saying that the Secretary of State's proposal to take this money from the housing revenue account subsidy due to the council is unlawful. 'The money was paid through a mistake of law and is irrecoverable'. Ms Kelly said other local authorities were in a similar position and would be watching the outcome of Camden's legal challenge.
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