David Cracknell and Robert Winnett
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JOHN PRESCOTT is to be allowed to remain in his grace-and-favour flat at Admiralty House in Whitehall after leaving the government this week.
The deputy prime minister, who is recuperating after a bout of pneumonia, has privately agreed with Sir Gus O’Donnell, the cabinet secretary, that he can stay temporarily while he looks for alternative accommodation in London.
Prescott met O’Donnell last week to discuss his housing. He has lived in one of the three luxury flats reserved for ministers in Admiralty House since 1997.
The unusual arrangement to stay on is set to be challenged as the flat is estimated to cost the taxpayer £100,000 a year. Tax experts claim he should face a hefty bill on the accommodation as he can no longer claim it is an essential perk of his job.
Whitehall sources said last week that the arrangement was temporary as Prescott, who announced his resignation last September, had yet to find new accommodation. He owns a turreted house in Hull nicknamed Prescott Towers, but his property search in the capital has been delayed by his illness.
The source said: “Prescott met Gus O’Donnell last week to discuss being allowed to stay in Admiralty House. It was agreed that he could stay while he looks to buying a place of his own in London.
“It’s only practical, as it takes two to three weeks to move out. He has been told by his doctors he should be taking it easy after his recent health problems.”
Last week Downing Street confirmed that Tony Blair would also be allowed to use Chequers, the prime minister’s country residence, for a few days while renovations on his new London home in Connaught Square are completed.
The arrangements for other grace-and-favour homes, including the foreign secretary’s, will be decided when Gordon Brown announces his cabinet after taking over the premiership this week.
Prescott’s flat in Admiralty House was most famously the venue for a reconciliation dinner between Blair and Brown in 2004 when the relationship between the pair had reached its lowest ebb.
Much of Prescott’s political reputation was destroyed last year after he admitted having an affair with his secretary.
He later lost the responsibility for running any Whitehall department and was forced to give up Dorneywood, his grace-and-favour country home, after being pictured playing croquet there during a week when he was standing in for Blair.

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If he can hang on long enough to become a sitting tenant he can then go on to purchase it.
A shrewd operator and a true Labourite to the end.
PeterG Howard, ARUNDEL, West Sussex
What does this man know?
what price did messers Blair & Brown willing to pay to keep him quite?
Mike, oxford, england
First past the post socialism is a disgrace. All their poor,talented and indebt people in UK are suffering and yet still vote Labour.
New Labour much worse than Old Commie Labour.UK situation is much worse than Wilson era of second rate nation and future looks very grim for this emerald isle.
USA influence has snubbed Cons. and made the end of Empire and demography a very sore subject and GB & UK are still in decline against 3rd world. The Foreign Office had a world mandate for all peoples but now it is millions for soccer and cricket and population expansions or 300 or 400 % since 1946.
Really, low factory system, and £ down from $5 to $2 all indicates a Labour destruction for foreign, reds, mainly.
Dr MI Barton MA. MBA.PhD, Oxon, UK
Will we be picking up the bill for his council tax too? I've not been well either but that doesn't entitle me to any favours. Time this man stopped living off the fat of the land and provided for himself and his family.
Christine Melsom, Farmham, England
What madness John should p[ay the going rent and stop living off the state. Why should he get away with it i'm fed up with this government with their rule for them and another for the tax payers. He should go and stay at his house in Hull.
Michael Whitehead, Rotherham, England
Corrupt to the end
syd, Leeds, uk
So Mr. Prescott "had yet to find new accommodation" in London? What has he been doing since he announced his resignation last September? He was sacked from any job relating to any Whitehall department, so that alone gave him plenty of time to look. But of course he did have all of those leisurely junkets hither, thither, and yon that consumed at least some of his spare time.
I wonder what kind of odds I could get that say in six months he will still be in that flat, sponging off the poor tax-payer?
Bob Evans, Anaheim, California
Correction - £2000 per week.
Ian, Solihull,
Has he been told it is £2000 a month?
If not, have the failures been sacked?
Ian, Solihull,
Good, for this surely means that I will be able, when I submit my tax return a few weeks late, to ask the Inspector to waive any penalty charges on the grounds that completing the return on time was not practicable as I had been unwell! What's sauce for the goose ....
Michael T, Surrey, UK
....and a couple of female civil servants as well?
P. Foot, Swansea,
As a champion of Old Labour, why can he not RENT a home while he is "looking"? A flat in a tower block in Lambeth or Southwark for example? Overlooking the wonderful railways that he used to be in charge of? Or the docks that used to be working when he was a ship's steward?
Bill McCann, Suzhou, China
this is yet again rules being bent for their own end. Prescoot had 10 months to find a new home and blair has had 2 years. this to me shows they are not able to organise their own lives but are telling us how we should live and take us to war, or are they just taking advantage of their power, or both.
Dennis Freeman, Norwich,
Is there an indoor croquet lawn at the Admiralty Arch flat ??
Rick, London, England
Why does he need a London home?. Is he expecting a peerage? He already has a home. Lets face he will no longer making important governmental decisions
ann, Whitby, UK
How long does he need to look? He announced well before his illness that he was stepping down.
But let him stay as long as he likes, BUT pay market related rent, council tax and all bills...
David, London,