£4.23m spent on Homes for Votes inquiry

Auditors spent the fortune first investigating and then defending their inquiry into Dame Shirley Porter's controversial "Homes for Votes" scandal at Westminster Council.

Labour councillors regretted the high costs but equally defended the expenditure, claiming the case will eventually set an important legal precedent.

But the Tories were furious with the revelation, describing it as "the longest running farce in Whitehall".

A string of investigations and court battles ensued after the designated sales policy was first brought to light in May 1996.

Last year the Audit Commission spent £1.059m on litigation costs - a rise from £853,000 in 1997/98 - according to its annual report published this week.

"The majority of this expenditure relates to legal costs incurred by the auditor in the appeal against the determination of the Westminster designated sales objections," the commission stated.

The costs follow Porter's successful appeal against the £27m surcharge set against her by the Audit Commission last year (Housing Today, 6 May 1999).

However, this itself is now subject to a further appeal in the House of Lords, a date for which has not yet been set. Solicitors are doubting it will begin before the new year.

In the meantime legal fees continue to rise.

Westminster's Labour leader Alan Lazarus, who campaigned against Porter, said: "It is clearly expensive and in an ideal world no one would have wanted to spend this money." But he added: "We think it is important that this is taken all the way by the Audit Commission. There are still some important issues that need to be resolved."

Tory policy and resources committee vice chairman Robert Davis accused the auditors of working to a political motive.

"This is the longest running farce in Whitehall," he said. "It is absolutely appalling that ordinary taxpayers are having to pay for this circus. There is never a chance even if they succeed that they will get these costs back."