Tower Hamlets (Parliament Politics Magazine) – UK government intervenes in Tower Hamlets Council, citing governance and accountability issues, with envoys leading improvements until March 2028.
Jim McMahon, minister of local government, stated that since the council had not improved in several areas, it was “both necessary and expedient” to step in.
According to an inspection report last year, the Tower Hamlets administration remained unchallenged because political parties did not respect and trust each other.
What led to the intervention in the Tower Hamlets council?
Inspectors saw that a small group connected to mayor Lutfur Rahman, the leader of the Aspire party, controlled the council’s decision-making process.
The culture and resource management of the council were also questioned by the inspectors, who pointed out a lack of senior-level trust and inadequate executive challenge.
In 2015, the High Court ruled that Mr. Rahman had won the 2014 borough election through “corrupt and illegal practices,” which resulted in his earlier ban from public office.
These included giving out grants in a way that amounted to bribery and falsely accusing his opponent, John Biggs, of racism.
Later in 2022, Mr. Rahman made a comeback with his Aspire party as the directly elected leader.
Ministers stated in a statement that the council was failing in “governance, leadership, culture, and partnerships” and that intervention was “necessary.”
Ministerial envoys, including Kim Bromley-Derry, the former chief executive of Newham, will investigate the council and report back to the government until March 31, 2028, as per the agreements.
Mr. Bromley-Derry will receive £1,100 per day for 120 days to help raise standards due to the “nature and scale” of the intervention, and two assistant envoys will receive £1,000 per day for a total of 120 days.
The council has set aside £6 million in budget plans, which are scheduled to be formally approved next month, to cover the cost of the government’s intervention and the required upgrades.
Although they have not “ruled out the possibility of further action in the future” if changes are not observed, ministers have cautioned the council.
The council “accepted” the findings of the November study and had already started making changes, according to a letter written by Mr. Rahman and Chief Executive Stephen Halsey to Mr. McMahon.
They added:
“We are determined that this statutory support package can be a fresh start to achieve meaningful and lasting change at the LBTH and welcome the input, oversight, and support of the Ministerial envoys to rebalance the political divisions and support the statutory officers in their role.”
Previously, from December 2014 until September 2018, ministers intervened in Tower Hamlets.