"Total dereliction of duty” - Liberal Democrats slam Labour council over damning reports into housing scandals

• Combined £6 million+ overspends 
• 6 figure sums signed off in breach of procurement practice 
• Works charged for which are still not verified to have actually happened 
• Consultants fees increased with project costs 
• Liberal Democrats: residents have no reason to trust Labour on housing 

Southwark Liberal Democrats have slammed Labour-run Southwark council following the long-delayed release of two damning investigations into major works scandals at Devon Mansions and Canada Estate. 

The reports, commissioned after pressure from residents and Liberal Democrat councillors, reveal how serious contract mismanagement, absent political oversight, and failures in resident engagement led to over £6 million in overspends, with work often delayed, poorly executed, or still unverified. 

Major works at the two estates, carried out between 2020 and 2023, were first brought to the attention of the Overview and Scrutiny Committee in late 2023, when councillors learned about the extent of the overspends and poor quality work. Two years on, internal and external reviews have now finally confirmed what went wrong. 

The investigations expose repeated breaches of procurement rules, including the use of one-page reports to sign off six-figure overspends, bypassing the council’s formal Gateway approval process. Contracts were not formally signed, exposing both the council and residents to risk. 

In one of the most egregious failures, external consultants were paid a percentage of total project cost, meaning their fees increased as costs spiralled, an incentive structure the council still refuses to reform. 

On both Devon Mansions and Kirby Estate, the same contractor oversaw concrete and brickwork repairs which investigators now say cannot be located or verified, raising serious questions about how leaseholders can have confidence in value for money. 

Oversight from officers and Cabinet Members was almost entirely absent. The reports highlight how key governance processes were ignored, and it remains unclear what, if anything, was reviewed at the quarterly performance meetings Cabinet Members were expected to attend. The scandals unfolded under the watch of five housing cabinet members in just five years, which the Liberal Democrats say reflects a complete failure of political leadership. 

This comes shortly after Cllr Sarah King, who has been Cabinet Member for Council Housing since early 2024, was elected by the Labour group to lead the council, ousting left-wing rival James McAsh following intervention from Labour HQ and local MPs. 

The Liberal Democrats have also condemned the council’s official response to the reports. Despite the breakdown of trust between the council and Tenant & Resident Associations (TRAs), the only proposed solution is to review the TRA code of conduct, ignoring the council’s own role in the relationship. The council has also refused to offer leaseholders refunds for unnecessary or substandard works, and declined to scrap the incentive model that rewards contractors when costs balloon. 

The reports are set to be discussed at next week’s housing scrutiny sub-commission, where the Liberal Democrats will raise their concerns and push for genuine accountability. 

 Commenting, Liberal Democrat Group Leader Cllr Victor Chamberlain said:  

"These long overdue reports show what we've been hearing for years: that our Labour council just cannot be trusted on housing issues. There's been a shocking negligence when it comes to contract management, signing off hundreds of thousands of pounds without proper processes, and a scandalous disrespect shown to tenants and leaseholders.  

And yet since these scandals came to light, we're still seeing the exact same issues crop up again and again, and on the main issues surrounding contractor fees and resident communication, the council is refusing to change, even after these reports have demonstrated clear failings. We've had an merry-go-round of cabinet members who have consistently taken their eye off the ball when they should have been scrutinising these projects. That they didn't is a total dereliction of duty.  

It's no wonder that residents lost all trust in this Labour council. Now we have independent confirmation that the council behaved appallingly, we need political accountability.  

Instead, Labour have promoted their housing boss who failed to get a grip on housing to lead the whole council. We need a total shake up of the housing department, and only the Liberal Democrats are leading the charge for that change."