25/04/2026
Anyone care to comment?
THE JUSTICE PRINCE CIC AND NORTH TYNESIDE LABOUR GROUP - LAND AND LOW WAGE SCANDAL?
Under the legal precedent of Porter v Magill, a councillor acts unlawfully if a "fair-minded and informed observer" would conclude there was a real possibility of bias or personal interest influencing their decisions.
There is a growing chorus of local critics pointing to a perceived "revolving door" between North Tyneside Council and Justice Prince CIC, a social enterprise co-founded and directed by the borough's most powerful political figures.
The heart of the controversy lies in the "Working Roots" initiative, and more recently land development issues. Working Roots was a scheme that has operated for over a decade, often in the shadow of major private contracts like the former £600 million Kier Group maintenance deal. While high-value repairs were handled by corporate giants, a separate, parallel system emerged for basic maintenance on the Longbenton Estate and elsewhere in the Borough —work carved out of standard housing services to be delivered by a CIC led by sitting councillors.
There is firstly an issue as to why this work was not part of the services that were contracted out to Kier?
THE "TEN-POUND-DAY” REALITY
While Justice Prince markets itself as a vehicle for "tackling social inequalities", the financial reality for its frontline "trainees" tells a different story. Young people recruited for tasks like clearing rubbish, painting void properties, and mending fences are typically paid a £50 per week bursary.
At roughly £10 per day, this compensation is a fraction of the £13.45 per hour minimum now guaranteed to North Tyneside's own lowest paid employees. Whilst Justice Prince CIC spins itself as anti-poverty organisation helping vulnerable youngsters, the reality is that it is a "poverty industry," where the economically vulnerable provide low-cost labour for council-funded contracts, while little evidence exists of these trainees progress into permanent, well-paid roles within the CIC itself. Meanwhile, the two sisters running the organisation pay themselves significant salaries, although because of the corporate veil behind what is essentially a private company, how much is not open to scrutiny. Yet it is paid by the Council tax payer.
LEADERSHIP OR CONFLICT
The optics of the arrangement are increasingly strained by the political rise of the CIC’s founders: Mayor Karen Clark, now the Elected Mayor, Clark remains the CEO of Justice Prince. Though she recuses herself from specific votes regarding the CIC, she now leads the very authority that remains its primary funding source. However, she does not recuse herself from housing, land and planning issues and other matters, which have a bearing upon Justice Prince CIC and itd donors. In fact, the level of authority she now has within the authority renders the ethical barrier of recusing herself meaningless. The perception is her interests can be served by others over whom she exercises implicit control. Similarly, her sister, Cllr Julie Cruddas is the Labour Group whip who directs and enforces voting on issues within the Labour Group. She also serves as the Deputy Chair of Planning as well as being a director of the CIC.
To our knowledge there has never been any proper evaluation or cost benefit analysis of the work undertaken by Justice Prince or who in fact are its principal benefactors - all we get is ‘spin’.
LAND DEALINGS AND DONATIONS
Their company, Justice Prince CIC received a donation from “The Banks Group” several years ago, around the same time permissions were granted to The Banks Group who are currently leading the Killingworth Moor - a 2,000 home project. More recently, a donation was made to Justice Prince by Persimmon Homes, whose application for 2,700 homes at Murton Gap is currently awaiting a Council decision.
THE LAW
Would a "fair-minded and informed observer" conclude there was a real possibility of bias or personal interest given those facts above?
The issue is how this all looks.
The bar is lower than proving bias, and we think that threshold has been met - in fact we believe this looks terrible. If Reform UK are returned in sufficient numbers to form the official opposition to Labour, it will be considering a complete investigation and an external audit to establish the probity of these arrangements and a referral to the Ombudsman if necessary.
This Labour Council has never seen proper scrutiny or opposition.
It is about time it did.
