The shadow communities secretary will lead mediation with Haringey LBC, after the Labour Party’s National Executive Committee unanimously voted to intervene over the council’s controversial plan for a public-private housing vehicle.
The Haringey Development Vehicle, under which £2bn of council assets would be transferred into a 50:50 partnership with developer landlease, has been criticised locally and acted as the catalyst for several of the borough’s Labour councillors being deselected ahead of elections in May.
The NEC yesterday agreed to a mediation process with Haringey’s leadership over the plans, with Andrew Gwynne set to request that the HDV is paused if a resolution cannot be reached.
Responding to the news, Southwark LBC leader Peter John (Lab) tweeted: “I respect UK Labour NEC, but I also respect the right of locally elected politicians to take decisions about how to manage their local authority. Local democracy should not be undermined by national government or party.”
NEC member and Islington LBC councillor Alice Perry also tweeted: “Will write my NEC report later but it’s worth saying that second hand reports of meetings are not always accurate and the NEC understands that it’s not it’s place to try to run Councils by proxy.”