Lucy Powell urged ministers to rethink legal action against Labour donor’s firm

Exclusive: Intervention by deputy leadership contender could have saved company based in her Manchester constituency millions

Lucy Powell urged ministers to reconsider costly legal proceedings against a property development firm in her constituency founded by a Labour donor, in a move that could have saved his company millions, the Guardian can disclose.

Powell, who is the favourite to be elected Labour's deputy leader this week, wrote to Angela Rayner on behalf of Urban Splash, a property developer in Manchester founded by party donor Tom Bloxham.