Leaseholders 'used as cash point'

Ms Harman says a breakdown of charges should be given

Leaseholders are being used by one London council as a cash point, according to MP Harriet Harman.

The Solicitor General and MP for Camberwell and Peckham says Southwark Council is overcharging for maintenance and repairs.

She says on the Clifton Estate the typical annual charge has risen from £500 in 2002/3 to £1,400 in 2004/5.

The council says the rises have come in as previous prices were inadequate and current prices are value for money.

Ms Harman also says Southwark does not give leaseholders a breakdown of where their cash is going.

'Value for money'

Councillor Steven Flannery said the council did not have the facilities to give details of what the money was being spent on, but said the prices included a recent rise in gas as well as lights, cleaning and door entry systems.

He said: "It is true that in previous years these costs have been substantially less but that hasn't been an accurate reflection of the cost associated with the services leaseholders are receiving.

"It's very much both value for money and it is a fair reflection of the cost for us providing them.

Ms Harman said: "For the council to say 'it is good value for money but we can't tell the leaseholders what it is they are paying for because we haven't actually got the details' just proves the leaseholders' point.

"What's happening is the council is just using these leaseholders as a cash point - they're using them like a hole in the wall.

"There's 11,000 of them and every year they can just have a demand slapped on them - this is how much money we want you to give us."