The government may enhance its scrutiny of an east London borough following allegations that the local authority lacks transparency and openness.

Steve Reed, the local government secretary, indicated he is contemplating granting additional powers to officials overseeing Tower Hamlets Council.

These powers might encompass areas such as “governance, financial oversight, and recruitment” within the Aspire-led council, but should only be exercised “when absolutely necessary.”

The council has received Reed’s message positively, viewing it as an opportunity for improvement, although they assert they have already made noticeable advancements.

The Aspire party, established by the previously banned mayor Lutfur Rahman, has been in control since 2022.

Back in 2015, Rahman was convicted of electoral fraud, removed from his position for corrupt practices, and barred from running for office for five years.

In January 2025, the Labour government dispatched three officials, known as ministerial envoys, to assist at the town hall.

This action followed a 2024 review which highlighted a “lack of sufficient evidence” that the council valued the constructive criticism necessary for fostering improvement.

In his statement to parliament, Reed acknowledged “early signs of progress” and “constructive engagement” with the envoys but expressed concern that the council was not “adequately aware of, or capable of evaluating its own situation.” He added that he was worried the authority did not grasp the seriousness of its circumstances.

Reed cited findings from an external audit conducted by Ernst & Young in December, which revealed ten “significant” deficiencies in the council’s operations.

Key among these was the “lack of an effective internal controls framework to protect public funds.”

Reed mentioned that envoys are set to conduct thorough reviews of licensing and planning decisions, management of community resources and grants, and “preferential practices in hiring and promotions.”

A review by the Local Government Association pointed out the council’s “overly positive” self-assessment but recognized evidence of “strong financial management.”

Reed stated he would allow the council and other stakeholders until February 2 to formally respond to these proposals before making a final decision.

A spokesperson for Tower Hamlets Council expressed satisfaction that the government acknowledged the council’s readiness to collaborate with the envoys and noted the initial signs of progress.