THE Labour Government and Lib Dem Islington council faced angry confrontation this week over the plight of thousands of “grossly overcharged” leaseholders struggling to pay service charges.
The row is over who is ultimately responsible for crippling bills being charged to the borough’s 10,500 leaseholders – the highest number for any local authority in the country – for work to their estates and properties. The council maintains it is being forced to charge anything from £10,000 to £40,000 per leaseholder, under the terms of a Government scheme to refurbish run down properties.
But Emily Thornberry, Labour MP for Islington South and Finsbury, argued that the Town Hall could and should use its discretion to reduce fees, in certain cases, or at least give the leaseholder more time to pay.
Signicantly, that is precisely what happens in neighbouring Labour Camden when it is shown that a leaseholder is obviously being overcharged for work to a property, according to councillors.
The row was ignited by Islington Leaseholder Forum member, Mike Read, who said Islington’s Lib Dems were using their own “creative interpretation” of the rules to try and blame the Government for its financial machinations.
It follows a threat by one hard up leaseholder Stephen Murphy from Spa Green estate, Clerkenwell, to go to prison rather than pay the charge.
Ms Thornberry said the government has given the council powers to exercise discretion on a case-by-case basis. “The leaseholders could either be given longer to pay or less to pay, it’s all in the council’s hands.
“We could change the law and force them to cap the fees at £10,000 but we think the Lib Dems should get on and do the right thing – and stop blaming us.”
Islington North Labour MP Jeremy
Corbyn also joined in the attack by accusing the council of “misusing” £158 million for refurbishments under the Government’s Decent Homes Standard, and then re-charging excessive amounts to the leaseholders.
“The council should accept the guidance of the Office of the Deputy Prime Minister who has put a £10,000 limit on the amount of money that is re-charged to leaseholders.”
But Lib Dem council leader Cllr Steve Hitchins is adamant that fees can only be capped by a Government change in the law. He said: “This shouldn’t be a political battle between the Government and the council. Our hands are tied.”
He maintained that only those under a private finance initiative (PFI) were capped at £10,000. “But we can’t cap the limit on what other leaseholders can be charged.” He added: “Unless the Government changes the rules.
“Everything we have done is with approval from the Office of the Deputy Prime Minister.”