Tower Hamlets intervention set to be expanded as Government backs investigative ‘deep dives’

The Secretary of State for Local Government, Steve Reed, also backed plans for the intervention team to conduct investigative "deep dives" into – among other areas – the council's recruitment practices, housing and resource allocations, licensing and planning decisions.

The Ministry of Housing, Communities and Local Government (MHCLG), sent three 'ministerial envoys' into the council in November 2024 in light of a best-value inspection that revealed failures relating to governance, leadership, and culture.

By January 2025, the Government resolved to expand the envoy team and launch a statutory intervention.

In a written ministerial statement issued on Tuesday (19 January), Steve Reed welcomed "the early signs of progress and the Council’s constructive engagement with the Envoys".

However, he voiced concern that the council "has not understood the severity of its situation or moved beyond planning for improvement into action and impact".

Reed cited findings from the Local Government Association's October 2025 progress review, which described a "tendency towards optimism bias".

He also highlighted an observation from the council's external auditor that there is “an ongoing reluctance within the organisation to fully acknowledge the scale of the challenge it faces”.

He proposed a revised package centred around increasing the powers available to the envoys and increasing their overall capacity, including the appointment of an additional 'assistant envoy' with expertise in finance.

Under the plans, the envoys would have new powers to exercise council functions associated with governance, financial management and the recruitment, performance management and designation of statutory and senior officers.

He also proposed increasing the allocated working days to 150 days for the ministerial envoys, and 120 days for each assistant envoy, commensurate with other interventions.

Alongside expanding the intervention, Reed also backed a proposal from the envoy team for a new project designed to address “long-standing allegations” made against Tower Hamlets.

In a separate letter to the Secretary of State, the envoys said the project could help tackle "negative perceptions" about the council, which undermines public trust in the local authority's leadership, governance, and culture.

It said the 'deep dive' project would look into patronage in recruitment and staff promotions, resource allocation (community assets and community grants), housing allocations, licensing and planning decisions and finally the structure, functions, activities and roles within the Mayor’s Office and Mayoral advisory team.

In response, Reed said: "I share the Envoys’ concerns, in particular regarding the Mayor’s Advisory team, and I am pleased that the council recognise this project as an opportunity to demonstrate transparency.

"However, considering issues faced by external bodies investigating non-compliance and the council’s tendency towards optimism, I propose to issue new directions requiring the council to support the project to the satisfaction of the envoys."

As a result, he suggested streamlining all assurance mechanisms to sit under a single improvement board.

Reed added: "This action is not proposed lightly. It is clear that there are some officers and members in Tower Hamlets working hard with the support of the envoys to improve the council for the residents of Tower Hamlets, and this announcement should not deter them from their commitment.

“Rather, I consider that the proposed package will provide them with the focused support and challenge necessary to hasten the pace of improvement.”

The London borough and any other interested parties can make representations on the plans on or before 2 February.

In a statement responding to the plans, a Tower Hamlets spokesperson welcomed the proposals, adding: "The council is pleased that the Government has recognised the council’s willingness ‘to work closely with the envoys’ and ‘early signs of progress.’

"We welcome the additional support being provided to increase the pace of change which we will deliver while overseeing the running of one of the most demanding places in the UK."

Adam Carey