procurement and contract management
Tower Hamlets Council is addressing persistent weaknesses in procurement and contract management, which external auditors say are causing financial losses and overpayments.
Tower Hamlets Council's Audit Committee received reports in September 2026 highlighting persistent issues in procurement and contract management, which external auditors Ernst & Young (EY) said have contributed to overpayments and financial losses. The report noted that many significant weaknesses identified in the previous year remain outstanding, with a new risk concerning financial sustainability also identified.
These ongoing concerns follow the Cabinet noting in September 2025 several instances of retrospective approvals for procurement actions, totalling £882,743, which raised questions about adherence to established procedures. The Audit Committee has been reviewing progress on action plans in response to external recommendations, including in July 2026 and January 2026.
Procurement and contract management refers to the processes involved in acquiring goods and services and managing the resulting contracts. This workstream addresses weaknesses in the council's purchasing and contract oversight, following statutory recommendations from EY in March 2025 regarding the 2023-24 audit results.
Key facts
- In September 2026, Tower Hamlets Council's Audit Committee received reports on persistent issues in procurement and contract management, leading to overpayments and financial losses. Source
- External auditors EY identified that many significant weaknesses from the previous year remain outstanding, and a new financial sustainability risk was identified in September 2026. Source
- In September 2025, Tower Hamlets Cabinet noted retrospective approvals for procurement actions totalling £882,743. Source
- The retrospective approvals were identified during a review of the Record of Corporate Director's Actions for Q4 FY2024-2025 and Q1 FY2025-2026. Source
About this summary
This summary was written automatically from our published stories and the council meeting records they draw on. It describes what councils have discussed and decided; it does not take a view on any decision. Each key fact links to the story it comes from. Updated 30 September 2026. Spotted a mistake? Email community@opencouncil.network.