Haringey Labour group has confirmed it does not intend to go ahead with the controversial public-private housing partnership that has been at the centre of a political storm in the borough.

The plan to ditch the Haringey Development Vehicle (HDV) – a 50-50 partnership between the council and private developer Lendlease – is contained in the group’s manifesto for the May 3 local elections.

It follows widespread criticism from left-wing party members that the HDV would not provide the affordable homes needed for the council’s residents.

Instead, the Labour group intends to use a wholly-owned company to build 1,000 council homes by 2022.

The commitment is one of five key pledges made in the manifesto, alongside a widening of council tax relief, free school meals for every primary-school child, redesigned adult social care and the establishment of a borough-wide fairness commission.

Deputy council leader Joe Ejiofor said: “The HDV did not commit the council to building additional council homes. We think it is really important to build additional social homes.

“The nature of the next administration is that it will be a majority of HDV-sceptics.

“We will have considered all of the options before we make the final decision on the HDV.”

When the original decision to use the HDV was passed, the council claimed the partnership with Lendlease was the only way of raising the money necessary to provide the new homes needed by the borough.

But a report presented to a meeting of the council’s Policy and Scrutiny Committee last month said a wholly-owned development vehicle could be used by the council to avoid caps on borrowing.

The manifesto, which was launched yesterday (April 8), also contains a pledge to extend council tax relief to 100 per cent for the borough’s least well-off residents, while making council tax and other charges fairer.

On crime, Labour intends to work with front-line police officers to tackle offending; develop a strategy to combat youth and gang violence, and knife crime; and build better partnerships between police and communities.

A revamp of adult social care could see the council reinvest in day-care centres, with all care staff set to receive the London Living Wage.

And young people stand to benefit from targets to reduce inequalities in educational attainment, along with a pledge to reinvest in a directly delivered youth service.

Cllr Ejiofor said Labour members had been involved in drawing up the manifesto right from the beginning of the process.

He gave assurances that the pledges were fully costed and could be delivered over the four-year term of the next administration – despite ongoing austerity measures from central government.

Cllr Ejiofor added: “I think it does show a change in the direction of the council. We do talk very much about the desire to in-source services. We believe it creates a new model for local government.”