In a significant move, ministers have formally intervened in the running of Tower Hamlets council, following the publication of a damning report highlighting a “toxic” political culture. Local government minister, Jim McMahon, confirmed on Wednesday that the government would be stepping in after concerns were raised over the council’s failings to provide value for taxpayers.
The intervention follows the publication of a ‘best value’ report in November, which found that the lack of trust and respect among political parties and council management had resulted in decision-making being dominated by a small inner circle around the mayor, Lutfur Rahman. This situation was described as unchallenged and damaging to the borough’s governance.
Lutfur Rahman, whose tenure as mayor had been marred by scandal, was banned from holding public office after a 2015 High Court ruling. The court found that he had won the 2014 election through “corrupt and illegal practices”, including portraying his rival, Labour candidate John Biggs, as a racist and allocating grants in a way that amounted to bribery. However, Rahman made a controversial return to public office in 2022 as the directly-elected leader of the borough with his Aspire party.
In response to the report’s findings, ministers said that intervention was “necessary” due to ongoing concerns about the council’s leadership, governance, and internal culture. As part of the intervention, a team of ministerial envoys, including former Newham chief executive Kim Bromley-Derry, has been appointed to oversee improvements and report back to the government until March 31, 2028.
The scale of the intervention has been described as significant, with Bromley-Derry set to be paid £1,100 per day for 120 days to assist in driving the necessary improvements. Two assistant envoys will also be engaged, each earning £1,000 per day for a combined total of 120 days. In the budget plans for the upcoming year, Tower Hamlets Council has earmarked £6 million to cover the cost of the intervention and to fund the changes required.
Despite the intervention, ministers have warned the council that further action may be taken if improvements are not seen within the stipulated timeframe.
In a letter to Minister McMahon, both Lutfur Rahman and Tower Hamlets’ chief executive, Stephen Halsey, expressed their acceptance of the findings from the November report. They stated that the council had already begun implementing improvements and were committed to ensuring that the intervention would serve as a “fresh start” for the borough. The letter also expressed gratitude for the support of the ministerial envoys, stating that their expertise would help “rebalance the political divisions” and assist statutory officers in their roles.
The move comes after a previous intervention by ministers in Tower Hamlets, which lasted from December 2014 to September 2018. This earlier intervention was prompted by similar concerns about governance and accountability within the council.
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In a statement, Rahman welcomed the new intervention, acknowledging that while there was much to be proud of in the borough’s achievements, there was still room for improvement. He stressed that the council was committed to working closely with the ministerial envoys and local experts to achieve better outcomes for the borough’s residents.
Rahman also highlighted some of the council’s initiatives, including universal free school meals, winter fuel payments for pensioners, grants for college and university students, and free swimming lessons for residents. He argued that these initiatives were proof that Tower Hamlets could maintain a strong financial position while investing in the community and improving the lives of its people.
The intervention is expected to be a turning point for Tower Hamlets, with many hoping that the increased oversight will address the council’s longstanding issues with leadership and governance. However, with tensions still simmering beneath the surface, it remains to be seen whether Rahman’s leadership will be able to weather the storm and rebuild the trust of both the public and government officials.
