An attempt to overturn Barnet council’s plans for a depot in New Southgate was narrowly defeated last night.

A Labour motion was put to full council calling for the decision to be retaken, on the basis key information was withheld from councillors when they voted to buy it for £13.5m last December.

Brunswick Park councillor Kathy Levine said councillors were told the site had cost £8m a few years before, when in fact it had been bought for £750,000 in June last year.

The Labour councillor said: “Crossrail 2 also may ask us to move and we have no idea what compensation we are going to get. The waste depot project has already got into a mess because of inadequate mismanagement.

“I urge you all to support us in looking at this again, before another mistake is made, and the residents’ hard-earned money is wasted.”

Cllr Levine added: “The way we had to find out about this has been absolutely abominable. This is no way to run a council, we should be open and transparent and that information should be available to us. It’s disgraceful.”

Conservative deputy council leader Councillor Daniel Thomas said the land was being bought at market value.

He said: “The £750,000 transaction you were talking about last year, that wasn’t on the open market, that was between two related companies.”

Spectators in the public gallery shouted: “Why didn’t you know about it though? Why did your officers not tell you?”

Cllr Thomas said: “The information we need is - what is the value today? That is the information that we have in front of us.”

He said the alternative sites would cost more than Abbots Depot, and to retake the decision would cost the council about £5m as contracts had already been exchanged.

Cllr Thomas added the redevelopment of Mill Hill East would bring in a £40m capital receipt for the council.

He said: “The decision making process was robust. This motion is wasting everyone’s time. We should carry on building this depot, Mr Mayor, as quickly as possible.”

Labour councillor Geof Cooke said: “It is disgraceful that the council is telling residents that the land is zoned for industrial use, so they should not object to it being used for dirty, smelly, noisy activity. The price being paid is the much higher rate for residential development.

“There never was any prospect of Abbots Depot being developed in isolation for housing, and with Crossrail 2 there is no chance of a comprehensive housing development.

“This deal stinks in so many ways. Where did Capita get the £8m figure, that councillors were told incorrectly was the previous purchase price. Why was the figure not corrected for councillors before the decision was taken?”

Councillor Brian Salinger said the Mill Hill East redevelopment had been agreed by all councillors.

He added there had never been complaints from people living near the current depot at Mill Hill East, and that Labour could take the matter to the council’s auditors to investigate the financial side further.

The motion was lost by one vote, with Conservative members voting against it.