London Borough of Tower Hamlets

Clive Betts Excerpts

Tuesday 4th November 2014 Commons Chamber

[Mr Pickles]

My hon. Friend was a very distinguished Minister in my Department, and he will know how long I agonised over the decision on Doncaster, because this kind of intervention goes against everything I believe in. I believe that local government is an independent entity and that is one of the strengths of our constitution, but there comes a point at which we need to ensure transparency, fairness and accountability, and it is certainly my hope that one of the commissioners will have extensive experience of practical election law and procedure, as that will strengthen that. It is also certainly my intention that Tower Hamlets will come out of this process much stronger.

[Mr Clive Betts (Sheffield South East) (Lab)]

I welcome the actions and proposed actions of the Secretary of State and his comments about the general good conduct of local government and local councillors throughout the country. He referred to audit arrangements. There have been some changes, but there is nothing in them that means that throughout this period the auditor in Tower Hamlets did not have the ability and powers properly to audit these accounts. However, in December 2012 the overview and scrutiny committee, despite being quite weak in many respects, highlighted concerns about the grant process and asked for a referral to the district auditor. Despite that, the external auditor, KPMG, signed off these accounts without qualification for 2012-13, as it did for 2011-12. Are there not serious questions to be asked about the role of the external auditors in this regard and about their value for money, or lack of it, in carrying out this work?

[Mr Pickles]

I was probably unkind to the Audit Commission in many respects, but it did stand around doing nothing on this, as, indeed, it did on Doncaster—which required the LGA to act in Doncaster. The existing auditors have to answer for their own conduct, but I will say that I do not think this was their finest hour.

--- Later in debate ---

[Mr Pickles]

Not for the first time, Mr Speaker, you take the words out of my mouth. My hon. Friend is a member of a very well-run council and he expresses some wise views. I would be interested in hearing his views, and those of any right hon. or hon. Member, as to how we might strengthen scrutiny in local authorities. Given that we have had a while to bed it down, there probably is a time for a re-examination.

[Mr Betts]

indicated assent.

[Mr Pickles]

I see the Chair of the Select Committee nodding wisely.