A £2bn scheme to build thousands of new council homes was today scrapped after a bitter feud between rival factions in the Labour party.
The Haringey Development Vehicle was at the centre of a battle for control of the north London borough during May's local elections.
Moderate council leader Claire Kober, who backed the public/private partnership, resigned after claiming she was the victim of bullying by left wingers.
The regeneration deal with developer Lendlease, was set to deliver 6,400 new homes, 20,000 jobs and a potential £275m profit for Haringey Council.
Phase one of the scheme involved the demolition of 1,300 existing homes on the Northumberland Park estate in Tottenham.
Some tenants opposed the project the scheme fearing they would be relocated during the work and unable to afford to return.
The decision to abandon the HDV was taken by councillors meeting last night. Council leaders said they were committed to keeping public land in public ownership.
Haringey declined to say how much the policy change would cost council taxpayers.