Government may tighten grip on east London council

The government could step up its oversight of an east London borough after criticism the authority was not open and transparent.

Local government secretary Steve Reed said he was considering giving officials further powers over Tower Hamlets Council.

These powers could cover "governance, financial management and recruitment" at the Aspire‑run authority but should be used "only where necessary".

The council welcomed the statement as an opportunity to support improvement, but said it had already shown progress.

The Aspire party, founded by previously banned mayor Lutfur Rahman, has controlled the council since 2022.

In 2015, Rahman was found guilty of electoral misconduct, removed from office for corrupt and illegal practices, and banned from standing for election for five years.

The Labour government sent three officials – known as ministerial envoys – to intervene at the town hall in January 2025.

This followed an inspection in 2024 which found "insufficient evidence" that the council "valued the constructive criticism required to drive improvement".

In a statement to parliament, Reed said there had been "early signs of progress" and "constructive engagement" with the envoys.

However, he said the council was not "sufficiently mindful of, or able to assess its own position", adding that he was concerned the authority had "not understood the severity of its situation".

Reed referred to reports by the council's external auditor, Ernst & Young, in December, which identified 10 "significant" weaknesses in how the authority is run.

These included an "absence of an effective internal controls environment to safeguard public money".

Reed said envoys planned a series of "deep dives" into licensing and planning decisions, the handling of community assets and grants, and "patronage in recruitment and staff promotions".

A Local Government Association review noted the council's "overly optimistic" view of its own progress but found evidence of "strong financial management".

Reed said he would give the council and other interested parties until 2 February to formally respond to the proposals before taking a decision.

A Tower Hamlets Council spokesperson said the council was pleased that the government recognised the council's willingness to work closely with the envoys and early signs of progress.

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