Andy Slaughter
MP for Hammersmith and Chiswick · Labour · United Kingdom
“I welcome the Bill, and thank the Government for introducing it and bringing it back to the House before the summer recess. It is the result of years of committed campaigning, led by the families of the victims and survivors of Hillsborough.”
“I know that case means a huge amount to the hon. Lady as a constituency MP, and I thank her for all the work she does on the Justice Committee. I think we have only begun to scratch the surface. This Bill will be a transforming piece of legislation. I will make one final comment.”
“This would be a new, independent public body that collated, analysed and followed up on the conclusions and recommendations made after official investigations into deaths and state failings, in order to improve oversight and implementation of them.”
“I think I have taken enough time, but I thank the Member for that intervention. This afternoon, the Justice Committee signed off a new major report on legal aid, which will be published on Friday. Those who are interested can read more there.”
“In the time that I have, I will focus my remarks on clauses 1 to 16, which create a new appeals body for immigration and asylum cases known as the independent immigration appeals authority.”
“From that visit, our diagnosis was that these are operational problems. There are two key questions for the House: will the IIAA fix the problems with the current system, and will it be truly independent from the Home Office?”
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“It may just be coincidence that many of them began their remarks by saying that they were former journalists, but they then misrepresented what is intended by—and, indeed, the actuality of—section 40 and the amendments made in the other place. In any event, their comments were miscast. Cost shifting is often a part of the cost regime in our courts. It is done to increase either access to or the administration of justice. It is done not punitively, but to encourage, and to ensure that justice functions effectively in everyone’s interests. In this case, it works by giving newspapers the option of signing up to an independent regulator that offers compulsory arbitration, or meeting the court costs of reasonable claims made against them.”
“The Government have quite rightly set up inquiries into the Grenfell Tower disaster and the contaminated blood scandal—two extraordinary scandals affecting millions of people across this country and our major institutions. What is to prevent the Government from stepping in at any time and saying, “We’re not happy with the direction. We believe that this inquiry is now irrelevant. We won’t continue it anymore.”? This weakens faith in our constitution. I turn to the amendments made in the other place regarding section 40 of the Crime and Courts Act 2013. I have heard comments that are just plain wrong, particularly from Government Members.”
“The fact that Sir Brian is firmly in favour of finishing the inquiry with extended terms of reference—we know this now, although I do not think that anyone who heard the statement last Thursday believed it to be the case at the time—really sets a precedent. I wonder when it has previously happened that the views of an inquiry chairman have been disregarded and overturned in this manner, part-way through an inquiry. If this were a scandal in any other industry, the press would be firmly behind finishing the inquiry. Public confidence in the press, and in us, will suffer if inquiries into press misconduct are abandoned, effectively at the instigation of those who run the media in this country. As I said in an intervention, if we can do this with one inquiry, we can do it with another.”
“We need to proceed with Leveson part 2 because we owe that duty to the Hillsborough families, to the families of Milly Dowler and of Madeleine McCann, to Christopher Jefferies and to others who deserve to know the truth about what happened to them. That would have been an uncontroversial thing to say even two or three years ago, but it appears to have been forgotten. The innumerable meetings that now take place between senior members of the Government and senior people in the press—and the paucity of such meetings with the victims—speak for themselves. We have not got to the bottom of the hacking and data scandals at the News of the World, the Mirror Group titles and other newspapers. This issue does not affect only the newspapers of the right or of the left; it affects newspapers across the spectrum.”
“The second part of the Leveson inquiry was promised to the victims of press abuse by all party leaders in the clearest possible way, and it is difficult to see what has significantly changed since that time. Despite that, and perhaps even more surprisingly, despite the wishes and views of Sir Brian Leveson himself, the Government announced in an arbitrary and rather casual manner in the statement last week their intention to cancel part 2. If we do not have Leveson part 2, we will not know the extent of corruption across newspaper groups, the extent of corrupt relationships with the Metropolitan Police Service, and the extent of illegality and cover-up at newspaper titles.”
“I will spend what time I have dealing with the other matter of contention, which a number of Members on both sides of the House have raised: the amendments made in the other place. There are two. One is a requirement on the Government to proceed with a Leveson 2 public inquiry, and the other would effectively bring in, for the purposes of data protection offences, section 40 of the Crime and Courts Act 2013, which introduces costs. It would ensure that individuals affected by data protection offences—one could read across into defamation and other matters—committed by national newspapers had affordable access to justice in any action against those newspapers. That is the essence of it.”
“I am very pleased to follow the right hon. Member for Kingston and Surbiton (Sir Edward Davey), not least because it allows me to dispense with the first part of my speech, which will please the whole House. He has made exactly the right points in relation to what is known as the immigration exemption. It makes unnecessarily contentious a technically complex and, as Members on both sides of the House have said, necessary Bill. It makes EU citizens second-class citizens and allows the Home Office to collect and store data in a way that undermines other protections in the Bill, which means that it is something that we should not support. I hope that the Government will reconsider it.”
“Further to that point of order, Mr Speaker. If the Minister has concluded, or was at the point of concluding, her remarks, may I seek your guidance? We have had an excellent and very full debate on this matter. I was here for the opening speeches and decided to stay and speak in the debate. I noted that the Secretary of State said that this is a Bill with 208 clauses. We have had a full debate, but the Minister, in a matter of two or three minutes, has not in any conceivable way replied to it, despite having time available to do so. What can be done to ensure not only that this House has a full debate, but that matters are responded to by the Government, as they are duty bound to do?”
“He also refused to allow the suburban rail service to be incorporated. That would have been more efficient and was supported by a number of Conservative MPs in the capital.”
“Friend the Member for Harrow West mentioned the most pressing: the withdrawal of the entirety of the operational grant—£700 million. What other capital city would that be true of? But that is only where it all begins; we now hear that the money raised from vehicle excise duty in London, some £500 million, will also be spent only on roads outside the capital from 2021. It feels sometimes as though these decisions are spiteful rather than strategic. The current Transport Secretary is perfectly happy to overspend his budget by £300 million—including, as the right hon. Member for Chesham and Amersham (Dame Cheryl Gillan) said, £260 million on VAT for HS2. He said that we could not make adjustments to the system of penalty notices in London, which would have raised £80 million within our own resources.”
“He said last October that spend per head was a bad indication when judging the effectiveness of transport spending: “The calculation for London…doesn’t account for the substantial number of daily commuters and visitors, both domestically and internationally, who will be using and benefitting from the roads and public transport networks but who aren’t London residents…two in every three rail journeys start or end in London and there are eighteen times more passengers arriving into London during a typical morning peak than at Manchester, the busiest northern city. In particular, as the main international gateway into and out of the country, London will be the location for transport investments which look to serve passengers well beyond the local resident population.” Indeed, there are severe funding problems in London, and my hon.”
“I congratulate my hon. Friend the Member for Kingston upon Hull North (Diana Johnson) on securing this debate. If my hon. Friend the Member for Harrow West (Gareth Thomas) and I were of any assistance, it was, as usual, as her obedient servants in this matter. She made a compelling case for her own region, but I am delighted that she does not argue that we should rob Peter to pay Paul—take resources from my region, for example. Rather than use my own words to talk about transport spending in London, I shall quote the hon. Member for Blackpool North and Cleveleys (Paul Maynard), Transport Minister until last month and not, I suggest, partisan in favour of the Labour London Mayor.”
“Despite paying a huge dividend to its shareholders, Heathrow is only prepared to put £1 billion of that in. The expansion will have terrible consequences in terms of noise and air pollution. We must think again about that. I know that the shadow Secretary of State for Transport, my hon. Friend the Member for Middlesbrough (Andy McDonald), is applying the four tests of the Labour party and doing exactly that.”
“I declare an interest, because HS2 is bringing a lot of jobs and homes to my constituency, and it is co-ordinating with Crossrail, which is bringing a £42 billion benefit to the UK economy. We need Crossrail. We also need Crossrail 2. I remind anybody who thinks it is a new scheme that it is the Chelsea to Hackney line from the 1970s. Far from building these great infrastructure schemes in a way that is controversial, we delay for years and sometimes decades in doing so. Finally, one strategic project that I think is a terrible error of judgment is the expansion of Heathrow. We now know that its commercial benefit is half what the Airports Commission said. It is less than Gatwick, and the net present value of it is about zero over the 60 years. Public infrastructure, in terms of road and rail, could cost up to £18 billion.”
“Friend the Member for Harrow West indicated, done a lot for not just walking and cycling but increasing zero-emissions vehicles and, indeed, the whole green agenda in London. Last year, he also reduced operating costs for Transport for London by £150 million in a single year. I will briefly turn to more strategic matters. We have some major developments in London. I am a supporter of HS2, notwithstanding the disruption it is causing to my constituency and neighbouring ones, because it is one of those great transport projects that I believe the country needs. I agree, as I quite often do, with the right hon. Member for Chesham and Amersham that the execution of the project leaves a great deal to be desired.”
“In response to lobbying by Conservative Members to take trains away from that part of the service and put it on to the Wimbledon part of the District line, we lost that service, despite the fact that because of development, up to 8 million visitors will be going there and it is in the most densely populated part of London. We have to start taking sensible decisions. That is what the Mayor of London is doing. He has frozen tube fares, which were going up too quickly, for four years. He has introduced the hopper fare, which means that people changing from one bus to another do not have to pay extra. That has benefited 140 million journeys so far. He has introduced the night tube, which the previous Mayor failed to. He has reduced strike days by 65%, and he has, as my hon.”
“I will just say that I entirely agree with my hon. Friend and will not take any further interventions. I will give one example of how politics, rather than good sense, is governing the way that London is dealt with. It is a local example, but I think it is a good case in point. I am sure that many Members have visited the Olympia exhibition centre, an excellent Victorian centre that has been going for 100 years, serving the people of the country, not just London. Until seven years ago, it had a dedicated timetabled tube service.”
“That is partly because of the violence being shown to them and partly because any recourse to the authorities has been moved hundreds of kilometres away, so that even those who have the right to apply under Dublin III are unable to do so. Of course, that means that there is far more risk of them risking very dangerous ways to reach the UK, such as under lorries or on the rail tracks.”
“I will endeavour to be brief, particularly as I hope to speak in the next debate on child poverty in London. I begin by referring to my declaration in the Register of Members’ Financial Interests. On 4 September last year, along with my hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard), who is present for this debate, and the hon. Member for Crawley (Henry Smith), I went with Safe Passage UK to the Calais Jungle camp, or rather what remains of it. I had been there once before, at the very beginning of 2016, when it was in full swing, as it were. Although there are substantially fewer refugees there now, because of the demolition and the behaviour of the French authorities, the conditions are substantially worse, particularly for the hundreds of young people who are there.”
“I wish that the whole of that iniquitous Act could be swept away and that we could go back to there being an entitlement to legal aid, which was then qualified, rather than simply having a very frugal approach of giving legal aid in only a few cases. I am sure that this Government are not going to do that, but I have some hope that they will genuinely review LASPO and correct some anomalies—and this issue is clearly an anomaly. The people we are talking about cannot use the legal system, because it is complex and, as has been said many times by senior members of the judiciary, simply having the right to go to court is not enough unless someone has the ability to do so as well, and in many cases that means having a lawyer.”
“A very good example is given in the case studies provided to us by the NGOs: despite being a refugee herself, a grandmother is able to be a sponsor but does not have the necessary finances, and there is an uncle who is a British citizen and does have the necessary finances, but so many hoops have to be jumped through in order to achieve a resolution. I will conclude by repeating what a number of colleagues have said about legal aid. I had the dubious privilege of leading for the Opposition on the Committee considering the Legal Aid, Sentencing and Punishment of Offenders Act 2012, which stripped out so much of our legal aid system. The LASPO review is going on as we speak and is due to report soon.”
“We are a country with a strong tradition of tolerance and generosity, and if anything, I expect that to grow after we leave, not diminish.” —[ Official Report , 5 September 2017; Vol. 628, c. 64.] Some months on, I wonder whether the Minister for Immigration is able to update us today on the Government’s current thinking on that specific issue. In other words, will there be what I think all Members taking part in this debate would like to see, which is an end to anomalies where there are clearly people in this country who can care for children but who are not their parents? They might be their grandparents, uncles or aunts.”
“When we returned from that most recent trip to Calais, I asked the Secretary of State for Exiting the European Union what would happen if we leave the EU and the Dublin III regulations fall away. I asked him what the Government intend to replace them with, whether they would replicate them in the immigration rules, and whether they would apply—somewhat anomalously—just to the EU27 countries or more generally. I received what I thought was quite a helpful response at the time, which was 5 September last year. We know that the immigration Bill is delayed, but the Secretary of State said that that issue is “precisely the sort of thing that that Bill should address. A more general point I made to the European Commission negotiators…is that a legal requirement is not the only reason for doing things.”
“I absolutely agree. I feel for all the refugees in that situation, but particularly for children and those who have a legal right—whether they are Dubs children or Dublin III children—to be in the UK. Frankly, it is shameful that the Government did not honour their promise to Lord Dubs. Lord Dubs is a constituent of mine and last month I went with him to the Holocaust Memorial Day commemoration here in Westminster—of course, he came to the UK on the Kindertransport—and we met other survivors. I think that he is puzzled, as well as horrified, that we are unable to show to children who are being persecuted abroad now the charity that we showed in much more difficult times in the 1930s. I will make two specific points.”
“I respect the hon. Lady for turning up for the debate. We did not have any Conservative Members in the child refugee debate. Does she think at all that £27 billion taken out of social security since 2010 has had any effect on child poverty in London?”
“That was not an accident or market forces, but the deliberate policy of a Tory Secretary of State, Tory Mayor and Tory council leader, conspiring to ensure that we got fewer genuinely affordable homes.”
“The prediction is that it will get worse, and that average levels of child poverty will be back well over 40% in a few years’ time. I conclude by referring to a debate I had in this Chamber on Tuesday, on regeneration and social housing in an area called Earl’s Court and West Kensington, in my and the neighbouring borough. It is billed as the largest onsite development in the world outside China. There, 760 affordable homes and council homes are to be demolished without the promise of a replacement home for all the people living there. Some 7,500 homes are to be built, with not one additional social rented home on that site. When such policies are pursued, it is no wonder that we are dragging people into poverty and not giving any hope to children who are growing up in overcrowded, appalling conditions.”
“We have seen the effect across a whole raft of Government policies, deliberately introduced by the coalition Government, and continued by this Government: the two-child rule; the benefit cap; the benefit freeze; and now universal credit. One figure that caught my eye in the excellent briefings we were given for this debate was evidence from Southwark Council that the average council rent account is £8 in credit; but for universal credit recipients, it is £1,178 in arrears. People are being evicted and are struggling to make ends meet because of the effects of universal credit, particularly the housing elements. Until we see a change in Government policy, or better still a change of Government, the situation will not get better.”
“I praise my council, Hammersmith and Fulham, which moved to Labour control in 2014. It has done what it can to revive and support Sure Start and, sadly in some ways, to support food banks and open new centres to support advice services. It has done what it can, given the vast local government cuts over that period, to try to alleviate the worst effects of child poverty. I praise the Mayor of London, Sadiq Khan, who has also been mentioned. He is trying to tackle low pay, improve childcare and build genuinely affordable housing—very different from his predecessor. They are pushing water uphill, however, given the cuts that have been made. In an intervention, I said £27 billion had been taken out of social security programmes since 2010. That is a phenomenal sum of money.”
“In some ways that is slightly counterintuitive, because it is a ward with high levels of social housing, where one would expect rents to be relatively low, compared with the very high market rents, let alone the cost of purchasing a property, in the area. However, as was indicated, in many ways, social housing is a thing of the past—not only because of the conversion, particularly by some housing associations, of social rents to affordable rents, but because of the sale of council houses, which are then not replaced. We have the obscenity of slum landlords owning sometimes dozens of properties on estates, and renting them out at—or in some cases above—the housing benefit cap, driving families into poverty, as well as making them live in extremely poor conditions. It is not the case that nothing is being done to address that.”
“My borough of Hammersmith and Fulham is not far behind: after housing costs are taken into consideration, 35% of children there live in poverty, and 33% do not reach the expected levels of speech and language skills at the age of five. Where children are on free school meals, that rises to 43%, and I have schools that have up to 70% of children on free school meals. If one looks at the worst-affected wards—in my case, the Wormholt and White City ward—the figure for children living in poverty after housing costs is 45%. As has been said by a number of Opposition Members, housing is perhaps the most significant issue that makes a difference here. If one looks at Wormholt and White City, the figure is 30% before housing costs are taken into consideration—still very high—but 45% afterward.”
“It is a pleasure to serve under your chairmanship, Sir Henry. I add my congratulations to my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) on securing the debate, and on the way she has set the scene. She sets a real example to us all as a champion of her constituency and our city. One of the myths my hon. Friend has buried today is that London is a rich city for the many, rather than just the few. We have seen that, in fact, London has the worst levels of child poverty of any region of the country. Indeed, as my hon. Friend the Member for Westminster North (Ms Buck) indicated, what are often thought of as some of the richest boroughs in the centre of London—Westminster, Camden and Islington—are right up there in terms of child poverty levels.”
“I do not have time, I am afraid. The Minister knows that, because he was a deputy Mayor for London at the time, so he might want to address his record, as perhaps might some of the other Members who have spoken. I am afraid to say that the right hon. Member for Kingston and Surbiton (Sir Edward Davey) might want to address his record in government, because that is when this dates back to. I have 20 seconds left in which to speak, and I would not like to refuse courtesy to the hon. Lady, so I will give way.”
“I will never be accused of not having good grace. I leave the hon. Lady with one fact: in the last three years in which the Conservatives were in power on Hammersmith and Fulham Council, they actually managed to reduce the number of social homes. That is quite some achievement.”
“In March 2011, they formed West Ken Gibbs Green Community Homes, a community-controlled not-for-profit organisation with membership from more than two thirds of households on the estates. It was set up with the intention of exercising council tenants’ right to transfer.”
“Even if the developer had the finances and political support to begin evicting residents tomorrow, redevelopment of the estates would still take at least 20 years to complete. Residents have done everything they can to make it very clear what they do not want: demolition. In December 2009, a year after learning of the possible demolition of their homes, residents from 83% of households on the West Kensington and Gibbs Green estates signed a petition to oppose it. In March 2012, 80% of residents who responded to the council’s consultation on the scheme said no to demolition. Residents have also been very clear about what they want instead: community ownership.”
“Even when residents were told that homes would be available on the site, there were strings attached. Homeowners, private tenants and households who moved into the estates after the land sale agreement was signed in 2013 have no guarantee of finding a replacement home in the area on eviction. Secure council tenants who move into the first phase of replacement homes could see their service charges triple to between £2,500 and £3,500 a year on top of rent. Having been initially promised like-for-like replacement homes, residents who currently have spacious flats and houses built in the 1960s and 1970s, some of which have gardens and off-street parking, have now been told simply that replacement homes will meet the legal minimum size standard.”
“Members will forgive me, however, I will turn my focus to the estates, or rather to the people who live there. I first got to know West Ken and Gibbs Green in 1985 as the newly selected council candidate for Gibbs Green ward. The first campaign that I had to fight was to stop the then Tory council putting a relief road through the West Ken estate. It has been a pleasure to represent the area as a councillor and MP for 28 of the past 32 years. Although on aggregate it is a low-income community, it includes people from every walk of life, ethnicity, nationality and profession. Residents reacted with horror to the prospect of demolition of their homes. At first, there was no guarantee of rehousing in the area—only the statutory requirement to rehouse secure tenants in suitable alternative accommodation.”
“I wrote: “I want to make it very clear that I do not believe the continuation of this development under the current terms is right. And, as a minimum, if this is to continue I want to see more social and more truly affordable housing included in this scheme.” I am pleased to see my hon. Friend the Member for Kensington (Emma Dent Coad) present, because part of the site is in her constituency. As she knows, my reference to 14 June was to the Grenfell Tower fire. So what happens now? It is too late for the exhibition centres that were demolished in an act of vandalism, but it is not too late to build an acceptable replacement on the site. It is far from too late for the Lillie Bridge depot, which is still owned by TfL, to undergo sympathetic redevelopment to preserve necessary infrastructure for the tube and new affordable homes. If hon.”
“Stephen Cowan, the Labour leader of Hammersmith and Fulham Council, has described the Earl’s Court scheme as “unviable” and “undeliverable” and called on Capco to return the estates to the council. He has the full support of the North End ward Labour candidates, Councillor Larry Culhane, Councillor Daryl Brown and Zarar Qayyum. It appears that he also has the support of the deputy leader of Kensington and Chelsea, Councillor Kim Taylor-Smith, who spoke about the scheme at a meeting of the full council on 24 January. On Monday, I wrote to the chief executive of EC Properties, whose parent company is Capco, to seek a meeting to consider the site’s future. I told him that on 14 June the facts on the ground in Kensington had changed.”
“With no money in the scheme and none from outside, Capco’s only other option is to return to planning and come up with a new master plan with increased heights and density. Sadly for Capco, that option also looks like a dead end. With Eric Pickles at the Department for Communities and Local Government, the right hon. Member for Uxbridge and South Ruislip as Mayor in City Hall, and Stephen Greenhalgh in Hammersmith Town Hall, anything was possible, but the political weather has changed. Now Sadiq Khan is Mayor and has very different ideas about what constitutes affordable and sustainable development. He has also made a strong commitment to tenants’ ballots and said that he wants “to make sure people living on social housing estates…are at the heart of any decisions” involving demolition.”
“Capco’s assumptions for residential value, which are significantly higher than the local market and schemes elsewhere in London, have not been realised. Sales are slower than expected: flats have been selling at a rate of less than one a week. At one point it was selling one flat a fortnight, at which rate it would take more than 150 years to sell the entire scheme, yet the business plan relies on a high sales rate of 480 private homes a year. Unsurprisingly, Capco has tried in recent months to sell some or all of the site to overseas investors in America, South Africa, Japan, China and Saudi Arabia, but it has had no takers. Frankly, any developer, however much of a gambler, would be beyond reckless to take any of the Earl’s Court site off Capco’s hands.”
“It has no experience as a major land developer, and it shows. It does not have control of the master plan site; it has no option on Lillie Bridge depot, which is owned by TfL; the estate residents, through their lawyers, dispute that the conditional land sale agreement for the estates is enforceable; and now the deliverability of its scheme has been further undermined by the sale of the Empress State building. Capco’s scheme, the value of which fell by 20% in 2016, includes £1.8 billion of enabling infrastructure costs. At £148 per square foot, that is more than three times the cost of larger development schemes in London. Other residential developers have commented on Capco’s extreme construction costs, which are thought to be 30% to 45% above the market rate.”
“They include Hong Kong-based mega-developers Kwok Family Interests. One of the family, Thomas Kwok, is currently serving a five-year sentence for bribery. Although I have referred, and will continue to refer, to Capco as the developer, in fact the estates were purchased through an obscure entity called EC Properties LP. The sole partner capital contributed to EC Properties LP is £2 paid in cash by Jersey-registered EC Properties LP Ltd. These and further labyrinthine arrangements appear designed to put Capco in control while shielding it from liability and allowing it to take advantage of offshore tax arrangements. Before being tempted by the prospect of rich pickings in Earl’s Court, Capco’s business was commercial and retail estate management, specifically through its ownership of Covent Garden.”
“For reasons of time, I must return another day to what I regard as one of local government’s great financial scandals: how not just prime land, but whole communities were sold for a song to serve an extreme political agenda of gerrymandering and social engineering. Most of the guilty men of the previous Conservative administration—and they were all men—have taken their poisonous philosophy elsewhere, but Capco still squats on Earl’s Court and West Ken like a toad. Capco is represented by its chairman, Ian Hawksworth, who is now most famous for being on the guest list for the President’s Club dinner, and Gary Yardley, its managing director, who is quick to pick up lavish bonuses for the granting of planning consents with negligible community benefit and huge community loss. Its development partners are even less savoury.”
“The council has already purchased 26 homes at an average price of £552,000, excluding compensation, which is well in excess of the estimated £350,000. The true value of the land is not recorded, but reading across from the valuation of the exhibition centre site, which is, suggests that a more accurate figure is around £1 billion. By accepting no more than 10% of the land’s value and by underestimating the costs of acquiring vacant possession, the council could now be left with a zero receipt and a maximum of 672 replacement homes for residents of the estates, having sold 88 homes to cover its shortfall. That will also not guarantee a home for all residents in the new scheme.”
“Member for Uxbridge and South Ruislip (Boris Johnson) was also not trying too hard—but that looks like a master stroke compared with the deal that the Hammersmith Tories did for the estate land. In 2013, Hammersmith and Fulham Council made a deal to receive £90 million for the estates, plus space in the new development to replace the homes lost. Uniquely in the experience of most planners and developers, however, that sum was not index-linked—as if property prices never rise in central London. Moreover, the council needed to deliver vacant possession of the land. That meant buying out 171 leasehold and freehold homes, which is normally the developer’s task. The maximum needed to acquire the homes was budgeted as £60 million, although valuation experts assessed the true figure as between £150 million and £174 million.”
“Because the ideologically driven council in Hammersmith and Fulham decided to attract the attention of its political masters in the Department for Communities and Local Government by showing that whole areas of social housing could be wiped and reconceived as luxury developments—they called it “sweating the asset”. For Capco, demolishing the estates was the price of the Tories’ co-operation with the scheme. Capco drove a hard bargain. The inequality of arms between developers and local authorities is not unique to Hammersmith. The deal done with TfL on the exhibition sites was hugely preferential to Capco, despite TfL owning the freehold—perhaps the right hon.”
“It is all that we could afford.” It says, “We did what Conservative politicians asked, and they wanted precious little affordable housing and not one new social rented home.” At the start of the process in 2008, Capco told me with similar candour that it did not want to include the estates in the master plan. Developing the exhibition centre and depot meant negotiating with a single partner, Transport for London. Bringing in the estates meant not only a political minefield, but buying up the land interests of the hundreds of freeholders and leaseholders who had bought the desirable homes, flats and maisonettes on Gibbs Green and West Ken. Why did Capco succumb?”
“One third comprised two estates of predominantly council housing: Gibbs Green and West Kensington. Around 2,000 of my constituents live there in 760 good quality, spacious, affordable 1950s, 1970s and 1990s low or medium-rise homes. In place of all that, Capco promised 7,500 high-rise flats, of which only 11% would be additional affordable homes that stretched that definition to its limits by, for the most part, offering nugatory discounts on extortionate market prices. Interestingly, now Capco is aching for a deal—any deal—to get out of the scheme, it does not say, as most developers do, “Look at our viability assessment.”