Building Stable Communities The Conservatives were narrowly re-elected in Westminster in the
1986 local council elections with a majority that dropped from 26 to four. Fearing that they would eventually lose control unless there was a permanent change in the social composition of the borough, Porter instituted a policy known as Building Stable Communities as a cover for implementing secretive projects designed to bring more Conservative voters into marginal wards in Westminster. The wards selected were
Bayswater,
Little Venice,
Millbank,
St James's,
Victoria,
Cavendish,
West End and
Hamilton Terrace. The aim of the Building Stable Communities policy was to sell 250 designated
council homes a year in the key wards in the belief that home-owners would be more likely to vote Conservative than council tenants. The properties were sold at discounted prices. Another vital part of Building Stable Communities policy was the removal of homeless voters and others who lived in hostels and were perceived less likely to vote Conservative, such as students and nurses, from the City of Westminster. As the City Council found it more and more difficult to move homeless people outside Westminster, the Building Stable Communities programme switched to moving homeless people to safe wards in the city, where their votes would have less impact. In 1989, more than 100 homeless families were removed from hostels in marginal wards and placed in the Hermes and Chantry Point
tower blocks in the safe Labour ward of Harrow Road. These blocks contained a dangerous form of asbestos, and should have been either cleaned up or demolished a decade before but had remained in place owing to funding disputes between the City Council and the by now abolished
Greater London Council. Many of the flats had had their heating and sanitation systems destroyed by the council to prevent their use as drug dens; others had indeed been taken over by heroin users and still others had pigeons making nests out of asbestos, with the level in flats in Hermes and Chantry Points well above safe norms. One former homeless refuge was sold off at a discounted price to private developers and converted into private flats for young professional people at a cost to the ratepayer of £2.6 million.
Labour councillors and members of the public referred the key wards policy to the district auditor to check on its legality. In 1990, the
Conservatives were re-elected in Westminster in a landslide election victory in which they won all but one of the wards targeted by Building Stable Communities. Porter stood down as Leader of the council in 1991, and served in the ceremonial position of
Lord Mayor of Westminster in 1991–1992. She resigned from the council in 1993, and retired to live in
Israel with her husband.
Court cases and surcharge In May 1996, after a legal investigation, the district auditor finally concluded that the Building Stable Communities policy had been illegal, and ordered Porter and five others to pay the costs of the illegal policy, which were calculated as £31.6 million. This judgement was upheld by the High Court in 1997 with liability reduced solely to Porter and her Deputy Leader,
David Weeks. After the judgement, the scandal and its effects were discussed in Parliament on 14 May 1996. In 1998, BBC Two screened a documentary,
Looking for Shirley, which profiled Westminster City Council's efforts to recover the surcharge and Porter's efforts to move her estimated £70m assets into offshore accounts and overseas investments. The
Court of Appeal overturned the judgement by a majority decision in 1999, but the
House of Lords unanimously reinstated it in 2001, with a surcharge of £27m levied on Porter. Including interest, the surcharge now stood at £43.3 million. In Israel, Porter transferred substantial parts of her great wealth to other members of her family and into secret trusts to avoid the charge and subsequently claimed assets of only £300,000. After the judgement in the House of Lords, Porter submitted an appeal to the
European Court of Human Rights. The appeal was ruled inadmissible in April 2003.
Final agreement In 2004, the still Conservative controlled Westminster City Council and the
Audit Commission announced that an agreement had been reached with Porter for a payment of £12.3 million in settlement of the debt. The decision was appealed by Labour members on the council and district auditor Les Kidner began another investigation. The ensuing report, issued in March 2007, accepted the position of the council that further action would not be cost effective and stated that "'Overall, the council acted reasonably in the recovery action that it took." In November 2009, ahead of a
BBC radio play,
Shirleymander, dramatising the principal events of Shirley Porter's time as leader at Westminster City Council, council leader Colin Barrow apologised unreservedly to all those affected by the "gerrymandering" policy. He criticised Shirley Porter by name for the first time and added that her actions were "the opposite of the council's policies today". Following reports in 2006 that Porter had bought a £1.5m flat in
Mayfair, the then
Mayor of London,
Ken Livingstone, asked
Lord Goldsmith, the
Attorney General, to commence an investigation into whether or not Porter committed perjury or other offences during the conduct of the homes for votes case. == Life in Israel ==