Many residents have been asking about the outcome of the Tower Hamlets Best Value Inspection and the Government’s decision to intervene and appoint envoys. We wanted to provide an update on why this has happened and what it means for the borough.
Why Has the Government Intervened?
A year ago, the Government announced an independent Best Value inspection of Tower Hamlets Council following concerns raised by Labour councillors and others, including the Local Government Association (LGA). These concerns focused on governance issues, particularly the high turnover of senior management—resulting in multiple interim appointments—the expansion of the Mayor’s office, changes to the grants regime, and weaknesses in scrutiny.
Lessons from the 2014 Intervention
Residents who have lived in Tower Hamlets for some time will recall that when Lutfur Rahman was previously Mayor in 2014, the Government commissioned a similar “best value” inspection, carried out by PricewaterhouseCoopers (PwC). That investigation uncovered widespread irregularities in grant funding, concerns over the sale of council-owned assets, and the misuse of public money for publicity. As a result, the Government appointed independent Commissioners to oversee key council functions, including grants, asset sales, publicity, and senior appointments.
What Did the Inspectors Find?
The latest inspection has once again identified serious failings in the way the council is being run under Lutfur Rahman’s leadership. In his 201-page report, Lead Inspector Kim Bromley-Derry concluded that “we consider that the aggregated evidence across the best value themes of leadership, culture, governance and partnership raises serious concerns.” He stated that, “We believe there is evidence of a culture of patronage in a number of appointments to the Council.” And he concluded that, “While the Council has a number of strengths it can be proud of, we have found a significant accumulation of best value concerns across a number of areas.”
What Will Happen Now?
Given that Tower Hamlets Council is responsible for over £1 billion of public funds and serves more than 300,000 residents, no Government—regardless of party—could allow these failings to go unchecked. Following the report’s publication in November, Local Government Minister Jim McMahon MP found that the council was failing in its Best Value duty and indicated his intention to issue legally-binding directions. Two weeks ago, these directions were confirmed.
Two weeks ago, these directions were confirmed, the council is now required to establish a Transformation & Assurance Board to provide external oversight and advice. This board must include two Opposition councillors as well as independent experts in governance, leadership, and partnership working. Within three months, the council must also agree on a programme of cultural change to rebuild trust between officers and councillors and implement a Continuous Improvement Plan to improve scrutiny, decision-making, transparency, procurement, and contract management. Oversight of these measures will be carried out by three Ministerial Envoys, including Kim Bromley-Derry.
A Damning Indictment of Lutfur Rahman’s Leadership
This intervention is a damning indictment of the way Mayor Lutfur Rahman and his Aspire Party councillors have run the council. Throughout the inspection and in the months that followed, Mayor Rahman had numerous opportunities to address concerns and allow proper scrutiny of his administration. Instead, he and his Aspire Party colleagues sought to obstruct and frustrate the process, even going so far as to threaten legal action against the Government and the inspectors.
Despite the clear findings of the Best Value report, Mayor Rahman continues to deny the reality of the situation. He repeatedly claims that the inspection relates to events before his election in 2022. However, the inspectors have made it clear that this is untrue and that their findings are a direct judgment on the council’s governance under his leadership—not that of John Biggs or any previous administration. Meanwhile, his Aspire Party councillors continue to make baseless accusations against Labour members without providing any evidence.
Labour’s Commitment to Tower Hamlets
We recognise that John Biggs did not get everything right as Mayor. However, following Lutfur Rahman’s removal from office in 2015, Tower Hamlets Council was in crisis. Under Labour, the council was stabilised and guided through years of severe Conservative Government funding cuts and the financial challenges of the COVID-19 pandemic. We are committed to learning from the past—both our successes and our mistakes—to build a better future for Tower Hamlets.
The Road to May 2026
Lutfur Rahman won the 2022 election decisively. Unlike what happened back in 2014, he has the right to see out his term. However, with a Transformation & Assurance Board he does not control, an independent Improvement Plan he cannot block, and Ministerial Envoys overseeing key decisions, the remaining 15 months until the May 2026 elections will be very different from the past three years.
Labour councillors will continue campaigning across Tower Hamlets to ensure residents have the transparent, accountable, and candid leadership they deserve. At the same time, in the Town Hall, we will work with the Ministerial Envoys and independent experts to restore good governance and protect the services that residents rely on.
Find out how your Labour Councillors have been fighting for you at: Petitions – Tower Hamlets Labour
Get involved with Tower Hamlets Labour here: Tower Hamlets Labour
