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The party’s leadership has insisted the multi-million-pound scheme for headquarters opposite St Pancras International will go ahead.

But they must stave off a growing rebellion among colleagues who think the project is bound to backfire.

The New Journal revealed last week how backbenchers and even some members of the council cabinet had grown increasingly concerned about the transfer, as local authorities continue to make cuts.
 

The move will see the current Town Hall annexe building sold, along with a host of other council-owned offices such as the Crowndale Centre in Eversholt Street, Camden Town, to pay for the new complex.

First suggested by Liberal Democrats and Conservative members, Labour has embraced the idea as a way of dealing with costly bills at the annexe which is prone to  lift breakdowns and plumbing problems. It is also argued that due to staff cuts there will be no need for as many council offices.

But last week backbenchers asked to be briefed on possible alternatives and tomorrow they will expect answers from senior councillors, including finance chief Councillor Theo Blackwell, over what else possible. The line so far is: There is no alternative.
 

Cllr Blackwell has been warned that the move will amount to “political suicide” for Labour in Camden because voters will hate the idea of the council buying and building new offices at a time when public services are being hacked back.

Conservative leader Councillor Andrew Mennear taunted Labour members over their indecision at Monday’s full council meeting. Labour chiefs fear a full scale U-turn on the project could lead further more mockery.

Junior members, however, believe that’s a price worth paying. One Labour councillor said they had been told the new offices, which will sit above two new swimming pools, will have marble floors. 

The source said: “How can we go to the people and say we’ve cut all of these services you value, but we’ve bought a new office for our chief officers? We should be using the receipts from sales of buildings to spend.”

There is also concern over whether Camden has scored the best deal for the annexe, which is considered a goldmine because of its location close to the transport links to Europe. It is claimed by some group members that the mood has changed within the group significantly enough for lead members to backtrack. The party’s annual general meeting is upcoming where cabinet places will be decided.
 

Cllr Blackwell was away last week and missed Labour’s discussion on the issues. He told the group this week again that alternative proposals would ultimately prove more costly to the taxpayer.

In an email, he said: “We will actually be reducing the footprint of the council by this measure, eventually lowering cost overheads and repair bills. This allows us to plan better, and protect frontline services and invest in schools. We need to plan for long-term savings, as well as short and medium term ones – that means investing to save for the future. Modernisation is necessary to meet other goals, such as investing in more efficient ways of working, saving money to protect other frontline services.”