The great Mount Pleasant rip-off

The news that the now privatised Royal Mail Group has sold the Mount Pleasant site to developer Taylor Wimpey for £193 million, a mere 565% of the ‘book value’ of the land, is the latest chapter in a genuine scandal.  And it’s a story that typifies why so many people feel let down by Tory-facilitated crony capitalism.

The Mount Pleasant site straddles the border between Islington and Camden boroughs.  It’s a prime site for a potential development at a time when London needs to massively increase the number of homes it builds each year, particularly homes that are genuinely affordable to people on low and modest incomes.  It’s important to say that Islington Council and I strongly support the principle of building new homes on the site, but that these have to contribute to helping the thousands of local residents whose lives are being ruined by being forced to live in appalling over crowding, or those struggling to get onto the housing ladder.

This piece by the excellent Dave Hill gives a pretty fair summary of the history of this site.

From the start Royal Mail Group had no interest in talking to Islington Council about the site.  Islington has among the toughest set of planning policies in the country and our independent analysis showed that a commercially viable development could be built with almost 50% of the new homes created being genuinely affordable.  Royal Mail Group made no effort to comply with this ethical approach to development and instead put all of their energies into lobbying then Mayor Boris Johnson to use his powers to ‘call-in’ the planning decision.

It’s important to understand just how important planning permission is in deciding how much any given piece of land is worth.  The value of a site like this land is set by how much money a developer can make from it. The granting of a planning permission for a very lucrative development will massively increase the value of the land, while a tough set of planning conditions on any site will reduce its value. Developers regard a site with a planning permission already in place as a less risky purchase and so the value rises accordingly – hence Royal Mail’s determination to get planning permission before selling.

The planning permission that Mayor Johnson gave was unprecedentedly weak, in the Islington’s recent history, at getting genuinely affordable housing.  It ran contrary to both Islington and Camden Council’s planning policy, but also contrary to his own GLA planning policy, which argued for a higher number of affordable homes on a prime site like this.  It therefore massively increased the value of the site to the owners.

It’s not like the potential windfall profits Mayor Johnson’s generosity generated for Royal Mail Group are a surprise.  Labour Shadow ministers warned in 2013 that the property assets of Royal Mail were vastly undervalued. This sale shows they were absolutely right. The Minister responsible was Lib Dem, Sir Vince Cable.

So some investors have made a ton of money and the politicians involved haven’t done too badly either: Johnson is now, almost unbelievably, our Foreign Secretary and Sir Vince Cable has just been elected party leader.  What’s the problem?

Where there are winners in life there are inevitably losers too. That that’s why this scandal really matters.  It matters because ordinary people have been ripped off twice by this move:

  • Islington has a housing crisis with thousands of families desperately in need of new genuinely affordable homes. The estates around the Mount Pleasant site have scores of desperately over-crowded families whose lives would have been transformed by a decent affordable home in the new development.  The real losers from this sorry episode are ordinary working families whose search for decent living conditions will go on because Boris Johnson oversaw this outrage. Local MP Emily Thornberry and local Labour councillors campaigned tirelessly to make this point but were ignored by Boris Johnson.
  • In a broader sense, we’re all losers. The Royal Mail Group was massively undervalued when it was sold off. As Labour made clear in 2013 the property assets of the group were not properly accounted for and so the new owners of Royal Mail Group have been able to make these astonishing windfall profits. Even if you agree with the privatisation of RM (and I don’t), no one can argue that taxpayers should have been treated in this way. No wonder that major corporate investors flocked to the sale and the Ordinary Joe lost out.  The upshot of this massive undervaluing is that we, the British public, got a terrible deal and the Government considered they had licence to push through hundreds of millions of spending cuts to public services that could have been avoided with more money from the sale.

If you ever want to understand who the public are so angry with a country that seems rigged against them and are turning to the Labour Party for real change it’s sorry stories like this, where the majority have been ripped off to generate massive profits for the few.

In the short term the Government should immediately intervene to:

  1. Insist more genuinely affordable housing is built on the site.
  2. Introduce a windfall tax on the now private Royal Mail Group to recoup the losses suffered by us taxpayers.

The whole sorry episode goes to show the difference the right Mayor of London makes.  The difference now Said Khan is in power at City Hall is marked, with the new Mayor wanting to work Islington to get the maximum amount of affordable housing on the Holloway Prison site.  The votes cast in the Mayoral election really have made a difference.

Posted in Uncategorized | Leave a comment

A quick update

I’ve just sent this update to members of my local Labour Party to let them know what I’ve been up to over the last few months. Please do have a look as it gives you a quick update of my work over the last few busy months: Members letter Summer17.

Posted in Uncategorized | Leave a comment

Standing strong after Manchester

Following the tragic attack in Manchester on Monday 22nd May, I, made the following statement:

“On behalf of Islington Council and everyone in Islington, I send our deepest condolences to the family and friends of those killed and injured in Manchester last night.

“We send our support and friendship to the people of Greater Manchester as they pull together, helping one another as is the tradition of that great city.

“Events like this remind us of the importance of standing together, and not allowing cowardly acts of terrorism to dictate to us how we live our lives.”

The attack in Manchester was a savage act that aimed to kill children.  In response to this horror we must stay strong. Strong in our response so that the people responsible are hunted down. But also strong in our values: we know that this evil will be ended more quickly if we stay united as a community and are steadfast in holding to core British values of tolerance, respect and community. We must use atrocities like this as a spur to build a more united community not tear ourselves apart.

Afterall, what terrorists want from attacks like this is to divide communities, increase hostility toward Muslims and disrupt our daily lives. To beat the hate mongers we must make sure the opposite happens.

Posted in Islington | Tagged , | Leave a comment

Theresa May: lunch snatcher

I’ve just come from hustings at St Mary Magdalene Academy, where I had the pleasure of deputising for Emily Thornberry.

As well as general disgust at the Tory cuts to Islington schools parents were shocked at Theresa May’s plan to cut free school meals from working families.  Low income parents were horrified that the out of touch Tories will take away a service that they have come to rely on.

Islington Labour introduced Free School Meals for All primary school kids in 2010. It’s a massively popular and effective policy that improves children’s ability to learn and saves working families £500 a year per child.

It is astonishing, even for the Tories, that they should hit hard working people in this way.  In the same way that Margaret Thatcher snatched children’s free milk, Theresa May is snatching their meals.

Please sign this petition put together by Fiona Twycross AM: Keep Infant Free School Meals.

FSM Page

Free School meals for all: works in Islington, will work nationally.

Posted in free school meals, Islington | Tagged , , , , , | Leave a comment

Labour’s manifesto – tried and tested in local government

One of the best things about Labour’s manifesto is that many of the best ideas in it have been tried and tested by Labour in local government – especially here in Islington.

I’ve been pleased to play a small part in this process through my role on Labour’s NPF and through the LGA Labour Group.  Just some of the highlights are:

Universal free school meals

Labour has pledged to introduce free school meals for all primary school children.

Islington Labour’s free school meals for all policy means that every primary school and nursery pupil receives a free hot and nutritious meal every school day. This helps children to focus on learning and removes the stigma of receiving free school meals. The policy has helped each family save £500 per year per child. Islington Labour has invested almost £2 million in providing free school meals for children in the last year.

This policy has helped Islington primary schools become some of the best in the country for helping pupils from poorer backgrounds achieve good exam results.

Affordable housing

Labour has pledged to build at least 100,000 council and housing association homes – for genuinely affordable rent or sale – per year by the end of the next Parliament. The need for more genuinely affordable homes is acute in Islington.

Labour run Islington are undertaking the largest council house building programme in 30 years and have delivered 709 new genuinely affordable homes in the past 2 years, prioritised for local people. The Council built 1,919 new genuinely affordable homes 2010-2015.

The Tories plan to force the council to sell off council homes, which will see it lose 300 much-needed council homes every year, and ban lifetime tenancies for council tenancies, which we strongly oppose.

Labour has pledged more secure tenancies and new consumer rights for private renters. They will also look at giving the Mayor of London power to give London renters additional security.

We have introduced targeted landlord licensing schemes to improve standards for private renters and fined landlords who weren’t treating tenants fairly over £50,000.

Affordable energy

Labour will ensure security of energy supply, that costs are affordable, and that we meet our climate change targets and transition to a low-carbon economy.

Labour supports the creation of publically owned, locally accountable energy companies, with at least one in every region.  Islington Council has built an energy plant – Bunhill Energy Centre – to provide cheaper greener power to local residents. We have supplied over 700 local homes with cheaper greener energy and cut energy bills for 3,000 council tenants by a third.


Labour has pledged a National Education Service, providing better education and life chances for all. It will enable everyone to upskill or retain at any point in their life, without fear of falling into debt with loans, by scrapping fees for adult learners.

Islington Council has helped over 3,000 local people into paid jobs, including over 800 young people, since 2014.  We have supported almost 300 young people to start apprenticeships since 2014.  We have halved the number of young people not in a job, education or training.

Living wage

Labour has pledged to raise the Minimum Wage to the level of the Living Wage (expected to be at least £10 by 2020) – for all workers aged 18 and over.  Islington became the UK’s first Living Wage council in 2012. All Council staff and 99% of our contractors are now on at least the London Living Wage, including our home carers.


Posted in Uncategorized | Tagged , , , , | Leave a comment

Jeremy Vine in Islington

Have a listen to the Jeremy Vine show from the fantastic Nags Head market on Seven Sisters Road.  It features, among other things, me being interviewed part of the way in.

The link is on the BBC’s iPlayer.

Posted in Uncategorized | Leave a comment

New Community Centre for Tollington

For the ten years they ran Islington Council, the Lib Dems neglected Tollington ward. 

When Islington Labour took power at the Town Hall in 2010 we decided to invest across the borough. We know that Tollington ward is one of the most deprived in the country but the community facilities were out of date and struggling to meet the changing needs of our area.

Working with Jeremy Corbyn, before he became party leader, ward councillors worked with the community to develop a plan that replaced two outdated community buildings with one new, and bigger, centre and some much needed council housing.

After years in the planning and building the development is nearing completion and it was a pleasure to visit it this week with ward colleague Cllr Flora Williamson.

new community centre visit RW & FW

Visiting the new community centre with Cllr Flora Williamson and Colin Adams,  who will manage the new building.

The building still isn’t finished yet but it’s really exciting to see it take shape.

new community centre visit 3

The new community space

new community centre visit 2

The community kitchen being installed

new community centre visit 1

The new sports hall

new community centre visit 5

The outdoor space with planters for food growing, with the new housing in the background

new community centre visit 4

A photo of some of the 23 new Council homes soon to be ready for local residents

Islington Labour was elected to deliver more jobs, better housing and help with the cost of living for ordinary local residents.  This new community centre and Council Housing development will do all three.

Posted in Tollington | Tagged , , , , , | Leave a comment