Westminster's Labour administration has faced criticism for hiring a demolition company that had been fined millions by the UK market regulator for rigging bids. The company, Keltbray, was fined £16 million in March 2023 after being found guilty of colluding on prices in competitive tenders. It was one of ten firms collectively penalised nearly £60 million by the Competition and Markets Authority for engaging in 'cover bidding' – a practice where one or more construction firms agree to submit deliberately losing bids, leading to higher prices or lower quality services for customers.
Contract Award Despite Fine
Despite this, the previous Labour administration at Westminster City Council awarded Keltbray a £3 million contract for demolition works related to the Church Street regeneration project. The decision was criticised by Conservative Councillor Paul Fisher, now Cabinet Member for Value for Money and Finance after the Tories regained control of the council in May. At a Value for Money and Transformation Policy and Scrutiny Committee on June 29, Fisher asked: "My question to members of the council is - insofar as we can do, don’t we want to avoid that? Through proper due diligence and contract management."
Contract Value Increased
The issue arises as the new Conservative administration promises a review of all council contracts over £5 million. Keltbray's fine was increased to £18 million in December 2024 after a failed appeal. In July 2025, the contract value with Westminster City Council was raised by over 100 percent to £6,310,634 due to additional works required to complete the contract, including undiscovered basements and asbestos.
Labour's Defence
Councillor Ellie Ormsby, Leader of Westminster Labour Group, defended the decision, stating that Keltbray was one of only two companies technically capable of delivering the work, both of which had engaged in cover bidding. She told the LDRS: "Given the limited pool of suitably qualified contractors, there were no viable alternative bidders who met the technical requirements of the project. Who would the Conservatives have appointed instead: a company that was not technically capable of delivering the work, or one that was significantly more expensive?" She added that the contract received 10 bids, five of which came from companies previously found to have engaged in cover bidding. The additional work, she said, would have been necessary regardless of which company held the contract.
