Major London council receives damning report from auditors

"Many of the weaknesses which we have reported here in the report are not new. They are long-standing issues that have persisted, some of which over many years. The pace of improvement has not matched in some cases the scale of the challenge facing the authority around a number of these matters. Without urgent and sustained action and clear accountability the council risks remaining in a cycle, in my view, of statutory intervention and limited assurance."

"EY outlined ten significant weaknesses in its audit of the council in the 2024/25 financial year. These included significant turnover in the council's three most senior management positions. EY said the council has been slow in efforts to find a permanent replacement for its former chief finance officer, who left in April. EY also said the council should have referred itself to the Regulator for Social Housing sooner after taking its housing management service in-house in 2023."

Tower Hamlets Council remains under statutory intervention overseen by government envoys. External auditors EY identified ten significant weaknesses in the 2024/25 audit, describing many as long-standing. Key problems include high turnover among the three most senior management roles and slow recruitment for a permanent chief finance officer after an April departure. EY found the council should have referred itself earlier to the Regulator for Social Housing after bringing housing management in-house in 2023, which led to a C3 grading. Additional weaknesses relate to procurement, contract management and internal investigations. The chief executive said leadership accepts the findings and is acting on recommendations.

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