Statutory intervention: London Borough of Tower Hamlets
Documents related to the statutory intervention at the London Borough of Tower Hamlets.
This page collates all the publications relating to the statutory intervention at the London Borough of Tower Hamlets.
Between December 2014 and September 2018 Tower Hamlets Council was subject to a statutory intervention under section 15 of the Local Government Act 1999, following an inspection that reported in November 2014. That report identified best value failure within the authority, particularly in relation to grant making, property disposal and publicity spending. During the period of intervention, the Council made sufficient progress for Ministers to end the statutory intervention in September 2018.
In February 2024, ministers announced they were concerned that some recent changes at the Council have the potential to undermine the improvement that allowed the previous intervention to end. To support the Council to continue to make arrangements to secure improvement in its governance arrangements and other areas linked to the past intervention, ministers appointed inspectors to undertake a new inspection of Tower Hamlets Council’s compliance with its Best Value Duty. Ministers appointed Kim Bromley-Derry CBE DL as Lead Inspector, and Suki Binjal, Sir John Jenkins and Philip Simpkins as Assistant Inspectors. The Inspection Team were asked to provide their Report by 31 May 2024. But they were later provided an extension to provide their Report by 31 July 2024.
On 31 July 2024, Inspectors submitted their report on the Council. The report identifies several positive features at the Council, such as the finance service and the enthusiasm shown by officers and members for serving the Borough. It also notes that the Council has already taken steps to make improvements, including in response to the Local Government Association’s Corporate Peer Challenge Report of September 2023. However, the report documents serious concerns across a number of areas which ministers consider amount to failings by the Council of its Best Value Duty under Part 1 of the 1999 Act, in relation to Continuous Improvement, Governance, Leadership, Culture and Partnerships.
On 12 November 2024, the Minister for Local Government and English Devolution, Jim McMahon OBE MP, announced in a written ministerial statement the publication of the Best Value Inspection and that he is minded to exercise powers of direction under section 15(5) of the Local Government Act 1999, to ensure the London Borough of Tower Hamlets’ compliance with the Best Value Duty. He also invited representations from the Council and other interested parties on both the report, and the proposal for a statutory support package.
On 22 January 2025, in a written ministerial statement, ministers announced that, after due consideration of the representations received, they were using their powers under the Local Government Act 1999 to intervene at the Council. The statutory support package, to be in place until 31 March 2028, is centred on putting in place a team of Ministerial Envoys to work comprehensively within the Council, acting as advisors, mentors and monitors, to oversee its improvement work.
On 9 July 2025, in a written ministerial statement, ministers announced the publication of the Ministerial Envoys’ first progress report, along with their response to it. While the report identifies progress with the intervention in a number of key areas, it also outlines the Ministerial Envoys’ concerns that wholesale political and staff buy-in and involvement in the Council’s improvement journey is not yet in place.
On 19 January 2026, the Secretary of State for Housing, Communities and Local Government, Steve Reed MP announced in a written ministerial statement that he was concerned the Council was not making sufficient progress and that its financial management and governance were deteriorating. He considered that the evidence amounted to new failure by the Council to comply with its Best Value Duty in relation to its Use of Resources, on top of existing failures in Continuous Improvement, Governance, Leadership, Culture and Partnerships. He announced that he was minded-to exercise his powers of direction under the Local Government Act 1999 to issue new Directions to strengthen the intervention package. He invited representations on that proposal from the Council and other interested parties by 2 February.
On 17 March 2026, the Secretary of State for Housing, Communities and Local Government, Steve Reed MP, confirmed in a written ministerial statement the decision to use powers of direction under the Local Government Act 1999 to implement a strengthened statutory intervention in the London Borough of Tower Hamlets. That decision was taken in consideration of all representations and the Envoy’s second progress report, received on 30 January 2026. The package, to be in place until 31 March 2028, is in line with the minded-to proposals, with some minor amendments. It requires the Council to take a set of specific actions, provides the Envoys with powers over specified functions to be treated as held in reserve and confirms the intention to appoint an additional Assistant Envoy with expertise in finance.
Documents
Updates to this page
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Added Ministerial Envoys’ second progress report; Ministerial response; letter to the Council’s Chief Executive; Ministerial Envoy appointment letters; representation from Tower Hamlets; Directions; and Explanatory Memorandum.
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Added letter from the Ministerial Envoys, letter to the Chief Executive and Secretary of State letter to the Ministerial Envoys.
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Added Ministerial Envoys’ first progress report, Ministerial response, and letter to the Council’s Chief Executive.
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Added Ministerial Envoy appointment letters; letter to the Chief Executive (22 January 2025); representation from Tower Hamlets; Directions; and Explanatory Memorandum.
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Added London Borough of Tower Hamlets: Best Value Inspection report, and Letter to the Chief Executive.
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First published.