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Politicians have demanded an inquiry into the leader of Westminster Council after BBC London discovered a company he ran went bust, owing thousands of pounds in unpaid business rates.

Councillor Colin Barrow was shareholder and director of Eiger Capital, an investment firm he helped set up that went bust in 2008.

A BBC London investigation has now revealed the fund owed almost £20,000 in unpaid business rates to Westminster Council at the time.

Mr Barrow, leader of Westminster Council, has conceded that the council "won't get very much" of the money back.

The Conservative politician said he currently has about £350,000 personally invested in Alpha Strategic, a hedge fund of which he is chairman and Kit Malthouse, Deputy Mayor of London and Chairman of the Metropolitan Police Authority, is finance director.

Paul Dimoldenberg, leader of the Labour group in Westminster, said: "For the leader of the council to owe such a huge amount in unpaid rates to the council as a result of his company's collapse is a very worrying situation.

"And particularly as the council is cutting jobs and services as a result of the financial crisis the council is in.

"The leader of the council has a number of other companies and he has a responsibility to make good what is owed to the council so taxpayers and residents don't lose out."

A Westminster Liberal Democrat spokesman said: "If there are doubts about the business relationship the leader has with his own council then an immediate inquiry is clearly required."

Since the company's collapse, Freedom of Information requests to the council to determine how much is owed were ruled by officers "not to be in the public interest".

But BBC London has now seen a copy of Eiger Capital's insolvency document, showing he invested £430,000 in the fund and owned both ordinary and preference shares.

The document states that Westminster Council was owed £68,145 at the time of the insolvency but a council spokeswoman now insists that the true figure owed was £19,186.

The document also shows Eiger owed money to other creditors, including £225,292 to HM Revenue and Customs.

Mr Barrow said the two firms - Eiger Capital and Alpha Strategic - were "quite separate businesses" and it would be wrong to repay the rates debt from his other company's funds.

He said: "It would be completely wrong. That's how the financial system works.

"Just because I am in public life I don't see it's necessary to guarantee the debts of every organisation I am involved with."

Mr Barrow admitted that he could withdraw his investment from Alpha Strategic by selling his shares on the stock market.

But he said: "I lost ten times as much as Westminster [from the Eiger collapse] and I have not profited.

"And I have not caused this situation either. I was never a guiding force.

"I don't have anything to hide here."

Source:  BBC

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Conservative plans would mean a 48 per cent reduction in on-street presence

Plans by Westminster City Council to axe 66 City Guardians in order to save £2.15 million will hit efforts to cut crime and tackle anti-social behaviour, according to a report to the Council’s Community Safety Scrutiny Committee on 14th April.

The report to the Scrutiny Committee from Dean Ingledew, Operational Director Street Management, says that there will be “a 48 per cent reduction in on street presence” and;

“Activities currently performed by the City Guardians which may be lost in the new structure include their contribution to some elements of crime and disorder reduction (pick-pocketing and shoplifting, youth anti-social behaviour for example), community work (child protection, work with the elderly population, lost persons and property, work with schools), and high visibility patrolling (reassurance and acting as the ‘eyes and ears’)”

Mr Ingledew’s report says that “City Guardians spend approximately 35% of their time dealing with crime and anti-social behaviour, 25% dealing with environmental issues and 40% in other reassurance or community work.”

Councillor Paul Dimoldenberg, Leader of the Labour Group, said;

“This Scrutiny Committee report makes it absolutely clear that efforts to cut crime and tackle anti-social behaviour will be hit hard if the Conservative plans to axe 66 City Guardians are allowed to go through. Cutting crime and tackling anti-social behaviour is one of residents’ top priorities and the Council should be cutting the £3 million a year ’spin’ and publicity budget rather than giving the sack to 66 City Guardians.”

Source: Westminster Labour

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Westminster Council revealed today that its 33 directors and department heads were paid up to £3,755,769 between them — an average of £113,811.

The highest earner is chief executive Mike More, who receives a basic salary of £200,379 plus a “deferred salary” or performance-related bonus — payable each April — of £22,264.

Mr More chose not to take the payment last year and is understood to be minded to do the same next month.

Twenty one of the officers can earn in excess of £100,000 if they receive their bonuses in full. Mr More, finance director Barbara Moorhouse (up to £185,000) and customer services director Vic Baylis (£162,978) earn more than a Cabinet minister who gets £144,520.

The data, published on the council's website, shows which officials also benefit from a pension, lease car, private health insurance and annual season ticket loan. These costs are not shown but it's understood that the council pays £235,000 a year for its fleet of cars and £220,000 a year on private health care.

Westminster is thought to be the first council in the country to reveal the salaries and bonuses earned by its top managers and is encouraging other councils to follow its example.

Normally senior salaries are only published well in arrears and without any obvious clues as to how much individual officers earn.

Graham White, Westminster's director of human resources, said: “We are pretty certain we are the first local authority to do this. Everyone else has run for cover on the subject of pay, and I think the more you hide it, the more confusing it becomes.

“We hope other public sector organisations will follow suit. There is nothing to be afraid of.” The council did not publish the salaries until all the affected members of staff agreed.

Paul Dimoldenberg, Westminster's Labour opposition group leader, said: “In principle it's a step in the right direction. It's right that the public should know what the highest-paid council earners are on, and all the perks that they enjoy.

"We have called for the bonuses to be scrapped during the current economic situation.”]

Westminster has an annual budget of almost £1 billion and has consistently set one of the lowest council tax rates in England. It says it has to pay “competitive salaries” to attract talented staff.

Source: This is London

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The number of staff in Westminster City Council’s £3.2 million a year press and communications department has more than doubled in size, from 13 to 30, over the five year period from 2004 to 2009, according to information unearthed by Labour Councillors.

The year-by-year growth figures, which represent a 130% increase, are:

2004 - 13 staff
2005 - 20 staff
2006 - 23 staff
2007 - 23 staff
2008 - 26 staff
2009 - 30 staff

Labour Councillor Guthrie McKie said “There can be no justification for the bloated size of the Conservative ’spin’ operation when hundreds of staff are losing their jobs and charges for meals on wheels and home care visits for the elderly are rising at considerably more than inflation. The priority should be to protect front line services for children, the elderly and the vulnerable, not glossy leaflets and ’spin’.”

Source: Labour Matters