All hon. Members will recognise the importance of having well-functioning local councils that provide essential statutory services that local residents rely upon. To ensure this, we need to get the basics right, resetting the framework to ensure the sector is fit, legal and decent. Government will continue to work directly with a small number of councils in difficulty, and this should be done in a way that is not punitive and is based on genuine partnership to secure improvements.
Today, I would like to update the House on the steps we are taking to improve governance and local accountability in the London borough of Tower Hamlets. On 12 November, I informed the House that I was satisfied, having considered the inspection report of Tower Hamlets council by lead inspector Kim Bromley-Derry CBE DL and assistant inspectors Suki Binjal, Sir John Jenkins and Philip Simpkins, that the council is failing to comply with its best value duty. They found insufficient evidence that the organisation is open and transparent, and values the constructive criticism required to drive improvement. I proposed a statutory support package to secure the council’s compliance with that duty, and gave the council until 25 November to make any representations it wished on the inspection report and my proposal for intervention.
I have now carefully considered the representations the council has made. I have also considered afresh the inspection report and have had appropriate regard to other representations that I have received about my proposed intervention. While I am grateful for the constructive engagement I have had with the council, who have accepted the inspection report’s findings and are committed to working in partnership with Government to deliver the change needed for local people, I remain satisfied that the council is failing to comply with its best value duty in relation to continuous improvement, governance, leadership, culture and partnerships. I have therefore concluded that it is both necessary and expedient for me to exercise intervention powers in the Local Government Act 1999 as I have proposed, with some minor amendments. Accordingly, I have today given the council the necessary directions under section 15(5) of the 1999 Act to implement the proposed statutory support package.
That 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. I have nominated Kim Bromley-Derry CBE DL as ministerial envoy, and Pam Parkes and Shokat Lal as assistant envoys—all experienced and talented professionals who understand that transparency and accountability are vital to the functioning of local democracy. Enlarging the team to include two assistant envoys rather than one will bring greater diversity of thought to the team and ensure that their approach to the challenges and best practice for local authorities is current. The envoys will report on the council’s progress against its improvement agenda after the first four months, and then regularly as we agree is appropriate.