Lambeth Council wastes £1.8 million of taxpayers’ cash to silence leaseholders

The Labour-run council has entered into an astounding 119 agreements between January 2019 and September 2023, with £1,811,500 being paid in compensation following settlements under these agreements.  

The information was provided in answer to a question at Full Council from Cllr Donna Harris, Leader of the Liberal Democrat Official Opposition. 

In response to the Liberal Democrats’ question, the Labour party stated that information regarding the legal costs associated with the creation and enforcement of these NDAs “is not held”. This raises the alarm the actual cost to the public has probably well exceeded the reported £1.8 million.  

Non-disclosure agreements (NDAs) and confidentiality clauses are legally binding contracts, commonly referred to as ‘gagging clauses’. They restrict signatories from discussing certain matters or sharing information publicly.  

Lambeth Council’s frequent use of NDAs and confidentiality clauses has ignited concerns about what information is being hidden from the public, and why the Labour leadership might want it kept under wraps.  

At Full Council, Cllr Harris asked, “Does the Cabinet Member for Housing think it is ethical to waste millions and cover it up by using NDAs to gag leaseholders?” 

In response, the Cabinet Member for Housing said, “I’m not going to answer that at all because I work quite closely with Lambeth leaseholders.”  

A Spokesperson for Lambeth Homeowners Association said, “It’s shocking that the Cabinet Member for Housing says she meets with us regularly when she hasn’t met us for two years. We want some answers about NDAs too.”  

Cllr Donna Harris has written to the Cabinet Member for Housing to ask further questions. The Liberal Democrats want to know how many confidentiality clauses were inserted at the request of the Council, and whether the housing department has a cap on legal costs.  

The council’s Labour administration is already facing a wave of criticism for the management of its housing stock.  

The Secretary of State for Housing, Michael Gove, has written two letters to Lambeth Council already this year, stating that “severe maladministration” has “failed residents yet again”.  

This month, Lambeth Council has become the first local authority in the country to be inspected in-person by the Housing Ombudsman because it has consistently failed to deal properly with complaints from residents.  

Commenting, Cllr Donna Harris, Leader of the Lambeth Liberal Democrats, said:  

“Lambeth Labour have shamelessly thrown millions of pounds of taxpayers’ cash down the drain to cover up their horrific housing failings. It’s beyond disgraceful.  

“We know only too well the horrors both leaseholders and tenants are facing here in Lambeth. Transparency and accountability is what is needed, not gagging clauses keeping the truth under wraps. This is a slap in the face to every citizen in the borough.” 

“The Liberal Democrats are demanding urgent answers, including an explanation of why the administration does not have clear accounting for their legal costs!”