Tower Hamlets Council's Audit Committee meeting on Thursday 12 March 2026 revealed significant weaknesses in the council's leadership and governance, particularly concerning the golden triangle
of senior officers. External auditors EY's report identified these significant weaknesses,
linking them to instability and delays in appointing a permanent Section 151 Officer. The role has been filled on an interim basis due to the unexpected departure of the previous officer, who reportedly did not work their notice period. Delays in recruitment and the subsequent conclusion that no candidate was appointable for the permanent role have contributed to the ongoing interim arrangements. Richard Ennis, the current interim Section 151 Officer, has expressed his commitment to strengthening these arrangements.
EY's report also raised concerns about the Audit Committee's independence, stemming from the continued membership of a cabinet member. While the appointment of an independent chair in May 2025 was intended to mitigate this, it did not fully resolve the issue. The council's constitution permits executive members to sit on the committee, a position agreed upon at full council. To alter this, a proposal would need to be seconded and voted on within the committee, with any changes to the terms of reference requiring a full council decision. Statutory officers are investigating this matter further to ensure consistency across various committees and will report back. Meeting minutes indicate that two cabinet members are currently on the committee, exceeding the perceived maximum of one.
Concerns were also voiced regarding the effectiveness of the committee itself, with councillors highlighting the need for more comprehensive training. One councillor stated, We do need to be trained more. I think that anyone, whoever's elected after the election and comes onto this committee, but other councillors too who might deputise, like, need that training. I would really want to make sure that that's in place for the new term.
EY's report recommended that the council engage an independent third-party organisation to deliver training, ensuring members fully understand the committee's terms of reference and are equipped for appropriate scrutiny. Mandatory third-party training is planned as part of the Member Induction programme following the 2026 local elections.
The Audit Committee reviewed the council's mobilisation plan,
with Abdel Razak providing an update. Councillors noted a shift in the presentation of progress and a return to language previously used in EY's reports. However, questions were raised about the balance of effort and resource allocation within the plan, with a request for more clarity on the person-days or effort allocated to each workstream. The comprehensive action list supporting the mobilisation plan is available, directly linking to EY's recommendations and demonstrating how actions address them. The report's use of the word showcase
was also debated, with some councillors preferring more direct evidence. One councillor expressed, I just didn't like the word showcase that was being used. I just thought it sort of made it look like kabuki theatre or some sort of pantomime. It's referred to under evidence. I just, I like the word evidence, but I like to see what is going to be the evidence rather than it being, essentially showcased.
The council is facing significant financial pressures, particularly in Adult Social Care (ASC), SEND, and homelessness. The 2024-25 outturn reported a £16.5 million overspend, with the Q2 2025-26 forecast indicating an £18.9 million overspend. Mitigations are in place, including Spending Control Panels and tighter expenditure controls. However, the 2025/26 quarter 1 report identified a significant gross forecast overspend of £45.7 million, primarily related to homelessness and ASC. The council's reserves as at 31 March 2025 stood at £150.9 million. The 2025-2028 Medium Term Financial Strategy (MTFS) anticipates a reduction in reserves over three years, with a forecast position of £91.5 million by March 2028.
Furthermore, the Audit Committee has not reported to Full Council since 2019, a period that may represent a missed opportunity to reinforce the committee's role and enhance transparency. The EY report also noted that the Chief Executive has not consistently attended meetings with the Mayor as expected, despite the recommendation for this to occur. The council's constitutional position, which allows for executive members to sit on the Audit Committee, is under review by statutory officers. This investigation aims to ensure appropriate consistency across planning, pension investment, and audit committees and will inform appointments in the next administration.
Agenda frontsheet 12th March 2026
Supplementary Agenda - Items 4.1, 4.2 and 4.3 12th March 2026
Supplementary Agenda - Item 3.1 and Item 4.6 12th March 2026
