Labour sells HQ to save cash
Labour has sold its Westminster headquarters at Old Queen Street as it struggles to deal with mounting financial problems.
Officials refused to give details on who it had been sold to or how much, but some reports suggest the deal, which was confirmed last night, was worth about £6 million.
Earlier this month, Labour announced an overhaul of its organisational structure to help cope with the £14.5 million deficit recorded last year, which has included a number of voluntary redundancies.
Reports in the Daily Telegraph yesterday also suggested that the party would have trouble paying its 230 members of staff next month and was even considering a whip round of MPs to help raise cash.
But Labour officials are furious about the newspaper’s claims, dismissing them as “utter rubbish”, and yesterday Labour general secretary Peter Watt sent an email to staff to reassure them that they would be paid.
“I wanted to write to you all and reassure you that what was written was nonsense,” he wrote, adding: “This was irresponsible journalism and I totally understand the concern it may have caused, but I want to reassure you that it is untrue.”
A voluntary redundancy scheme was in place, Mr Watt confirmed, but staff, trade unions and other stakeholders would all be involved in the reorganisation of the party.
“I can assure you that this consultation process is still ongoing and will ensure that our organisation is properly structured to win the next general election,” he continued.
“I want to thank you for your continuing commitment and dedication to the Labour party and reassure you that the party is proud to have such a hardworking and dedicated staff.”
The Conservatives are also in financial trouble following the general election, during which both they and Labour spent about £18 million in campaigning.
But the sale of Old Queen Street leaves Labour without any real property assets in London – the party is currently renting office space in Victoria Street.
