Tower Hamlets: Running of council under Lutfur Rahman under review

By Tim DonovanPolitical Editor, BBC London

Lutfur Rahman speaking after election in 2022

Government inspectors are being sent in to Tower Hamlets Council after concerns about how it is being run under its independent mayor, Lutfur Rahman.

They have been asked to look at a range of issues including how money is spent and senior job appointments.

Mr Rahman was removed as mayor of the east London borough in 2015 after being found guilty of electoral fraud but was re-elected two years ago.

The mayor said he was disappointed but willing to co-operate.

The review will look at budgets and financial planning, the appointment of senior management posts, the use of policy advisers and the “policy and practice of grant-making.”

The former chief executive of a London borough, Kim Bromley-Derry, has been appointed to lead the inspection.

The inspectors have been instructed to report back by the end of May on “whether the standards expected for effective and convenient local government are being upheld.”

Department of Levelling up, Housing and Communities (DLUHC) officials have become concerned by the “significant churn” of top officers at the council since Mr Rahman took over.

There are currently vacancies for three senior management roles, covering children’s services, communities, and housing and regeneration. The council is also looking to fill four director posts.

It is understood the council’s monitoring officer – fulfilling a key legal role – has recently decided to leave.

The government has also asked inspectors to look at “the use of resources for elections and the maintenance of the independence of the Returning Officer, and the arrangements to bring services such as Tower Hamlets Homes and leisure services in house”.

It was a Best Value review carried out in 2014 that led to government-appointed commissioners being sent in to run Tower hamlets a decade ago.

Councils have Best Value reviews to ensure they are delivering an economic, efficient, and effective service as well as continually improving.

In a letter to Mr Bromley-Derry, a DLUHC official said they were “concerned” with the authority’s ability to comply with its “Best Value Duty”.

It says DLUHC Secretary Michael Gove wants assurance that Tower Hamlets is “continuing to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness”.

The letter says there is a danger of “replicating” the circumstances that led to Mr Rahman being banned from office for five years.

It adds the appointment of a handful of advisers to Mr Rahman creates “the risk of a ‘dual Council’, side-lining officers of the authority in decision-making which, in turn, risks replicating the circumstances in which decisions were made up to 2014 that were corrupt and/or failed in the authority’s Best Value Duty”.

Responding to the news, Tower Hamlets Labour councillor Marc Francis said: “It is no surprise to us as opposition councillors to see that civil servants have seen enough of the rapidly deteriorating governance and wasteful spending at Tower Hamlets Council under mayor Lutfur Rahman and his Aspire Party councillors and ordered this best value inspection.

The council is under scrutiny by government inspectors

“We have been warning about this situation for more than a year, including by debating the woeful ‘action plan’ put forward following stinging criticism by the recent LGA (Local Government Association) Peer Review.

“Instead of accepting those recommendations, the mayor and Aspire councillors have made it clear they haven’t changed their ways.”

The mayor said in a statement that he was confident in the outcome of the inspection.

“I am of course disappointed with the government’s decision to inspect our council,” Mr Rahman said.

“We will co-operate fully with the process. I am confident that the outcome will be positive and that we will give the government the assurance it requests.

“Personally, I remain focused on our residents first and foremost. Tower Hamlets is one of London’s poorest and most overcrowded boroughs, and our residents deserve our continued dedication and service.”

A spokesperson for Tower Hamlets Council said: “We are surprised by the decision, however it is of course the prerogative of the government and we are confident in our work and will co-operate fully.

“Our work has been praised in recent independent reviews by the Local Government Association Peer Review and Investors in People. Although both reviews were positive, we are already delivering action plans to fulfil their recommendations for further improvement as is the culture in our council.

“In recent months, the council has also made significant progress in resolving historic financial issues of audit, assurance and governance going back to 2016.

“All of this at a time when Tower Hamlets has delivered innovative measures to improve more lives, such as being the only local authority to provide free school meals for all primary and secondary schools – an achievement recognised with an award by a cross-party parliamentary group only last month.”

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