24 August 2001
Councillors at the London borough voted by a narrow margin to reject the £26m PFI scheme for Haverstock School earlier this month.
But council leader Jane Roberts has refused to accept the decision and will put a slightly revised outline business case to a Labour meeting on September 3.
Sources at the council said backbench members would almost certainly rebel a second time against the plans, understood to contain sweeteners to win them over. These are expected to include low-cost homes for key workers instead of the original plan for luxury flats on former school land.
Leaders are also likely to argue that there will be financial implications for rejecting the PFI, most notably the loss of £17m from the Treasury.
Backbenchers have dubbed this a bribe and the Labour group is now described as 'hopelessly divided'.
But the leadership will have the tactical advantage of switching to a Cabinet system on September 1.
The Cabinet consists of ten senior Labour councillors, who will almost certainly approve the plans and may be able to dispense with full council approval.
Labour's chief whip, Dermot Greene, has reportedly already advised leaders to abandon the plans amid fears that the PFI could jeopardise next year's council elections.
Residents in the borough have vehemently opposed the scheme, which would see a private company rebuild the school and take responsibility for support services.
The pressure group, 'Haverstock Against PFI' has vowed to continue to fight the council and, if necessary, resort to legal action.
PFaug2001
