The Labour leader in Southwark has signed an agreement to redevelop the Elephant & Castle area. This agreement is considerably revised version of the draft agreed with the Lib Dems but the local elections this year got in the way of it being signed.

By my estimates it will result in between £100M and £200M less for the residents of Southwark in reduced social housing and overage. It also rips up the award winning proposal of Combined Heat and Power for the scheme. This makes the scheme far more carbon damaging. It also means no plans are in place to replace the ailing Aylesbury community heating.

As a group we seriously believe what has been signed is so bad we’re referring the decision to the District Auditor asking them to investigate as we don’t believe it represents good value for money for Southwark tax payers. This isn’t a move or step we take lightly. The deal also requires the sale of council housing land at below market rates. I’ve been assured by colleagues that we’ll lobby the Secretary of State to block this.

IF any deal was acceptable we’d have completed one years ago. The right deal is what’s required for E&C residents and Southwark tax payers as the results must stand the test of time over the next 100+ years.