Porter's millions to fund homes

Dame Shirley was accused of "disgraceful" gerrymandering

Millions of pounds recovered from a former Westminster City Council leader for her role in the "homes for votes" scandal are to be spent on housing.

Deputy leader Kit Malthouse said more than half of the £12.3m surcharge paid by Dame Shirley Porter would go on "bricks and mortar" projects.

He said it was a "fitting end" to the long-running saga.

Dame Shirley had played a key role in a scheme that sold off council homes to potential Tory voters in the 1980s.

The Tesco heiress had been accused of "disgraceful and improper gerrymandering" by district auditor John Magill, but was cleared by the Court of Appeal in 1999.

Q&A: Dame Shirley's downfall

But in December 2001 five Law Lords allowed Mr Magill's appeal and ordered Dame Shirley and former colleague David Weeks to make good the council's losses.

She originally faced demands for £27m plus interests and costs.

But after the lengthy legal battle she struck a deal with the council and paid the £12.3m on 5 July, amid some criticism that the deal was unfair on the victims.

At a committee meeting on Wednesday, councillors allocated £6.6m to CityWest Homes, the council's housing organisation.

About £1m will go to the Audit Commission to cover the legal costs it incurred taking its case to the House of Lords.

The rest will be re-invested in the city, the council said.