Housing, Communities and Local Government

I have previously updated the House on this Government doing what it takes to fix the foundations of local government. That includes taking prompt and direct action when councils are failing their best value duty. In that context, today I am updating the House on the steps we are taking in Tower Hamlets.

On 19 January, I informed the House that, having carefully considered the evidence, I was concerned that a year into the statutory intervention, the council was not making sufficient progress and had not understood the severity of its situation or moved beyond planning for improvement into action and impact. I considered that the council was not yet complying with its best value duty in relation to continuous improvement, governance, leadership, culture and partnerships, and that the evidence amounted to new failure to comply with the duty in relation to its use of resources. I therefore proposed changes to the current intervention package to accelerate and strengthen the required improvement work, and invited the council and other interested parties to provide representations on the proposals by 2 February.

I received five responses. I also received the envoys’ second report, which I am publishing today. The envoys recognise the progress the council has made in some areas, including engaging more effectively with its partners, the delivery of a staff survey and the development of a more mature continuous improvement plan. They conclude, however, that

“the overall pace of change and the grip of the officer and member leadership to drive improvement is insufficient.”

They describe the council’s leadership as “unnecessarily defensive”, noting that their energy is centered on

“managing the message and writing a plan, rather than on deeper ownership of the council’s issues and driving forward key deliverables".

The envoys welcome the proposed package and believe that it will support a necessary shift in the approach of the council’s leadership.

I have carefully considered the representations, the envoys’ second report and other relevant material. I am satisfied that the council is continuing to fail to comply with its best value duty, which includes additional failure in relation to its use of resources. I am also satisfied that the council is not yet making sufficient progress or demonstrating the required level of leadership grip under the existing model of intervention. I have therefore concluded that it is both necessary and expedient for me to exercise intervention powers under the Local Government Act 1999 as I have proposed, to accelerate and strengthen the improvement work, with some minor amendments, in order to:

Streamline the governance of the intervention,

Increase the transparency and scrutiny of the council’s reporting against its improvement journey, and

I am today setting out further steps that the Government are taking to expedite ambitious growth in Greater Oxford as part of our ongoing efforts to realise the full potential of the Oxford-Cambridge corridor.

The Oxford-Cambridge region is already a world-leading innovation corridor. Anchored by two of the world’s best universities, it is a hub for globally renowned science and technology firms, a breeding ground for internationally successful start-ups, and a magnet for talent and ambition. It has the potential to become one of the most innovative and economically dynamic areas in the world.

Maximising the full potential of the Oxford-Cambridge corridor requires us to identify and take advantage of the numerous growth opportunities that exist in the region. Oxford and its surrounding areas offer one such opportunity. Located at the western end of the corridor, Oxford already has one of the fastest-growing economies in the UK, driven by its world-leading technology, life sciences, and knowledge-intensive sectors from advanced manufacturing to artificial intelligence.

However, while the city and its environs are perfectly placed to deliver nationally significant growth to the benefit of existing and new communities and the country as a whole, numerous long-standing constraints risk undermining its full potential. These include inadequate transport connections, a lack of affordable housing, and energy and sewage capacity pressures.

In May 2025, I appointed Neale Coleman as chair of the Oxford Growth Commission and tasked him with identifying how best to unlock new development and accelerate growth across Oxford and its surrounding areas. The OGC’s interim report, published on 15 December 2025, recommended that a priority for the next 12 months should be consideration of the need for an appropriate delivery vehicle to support development in and around Oxford.