The council has been under observation since May 2025 when the town hall was issued with a ‘best value notice’ amid numerous governance concerns, reports Nick Clark, Local Democracy Reporter

Maria Christofi and Forhad Hussain (credit Newham Council) — Newham Council chief exec Maria Christofi with Labour mayor Forhad Hussain (credit Newham Council)

The government will keep Newham Council under observation until at least November, it’s been announced.

Ministers said there had been “clear progress” at the council since May 2025 – when it first issued a ‘best value notice‘ – but that “many improvements remain at an early stage”.

Newham mayor Forhad Hussain said the council’s leadership “welcome the review and the extension of the best value notice for a further six months”.

However, the government’s decision is a blow to outgoing top boss Paul Martin’s hope that the notice would be lifted this year.

The Labour government issued the notice against the council in May last year, citing concerns with the way the council was run.

These included its finances – the council had required exceptional financial support from the government – and poor findings by the Local Government Association, the Regulator for Social Housing, and external auditors.

In a letter to the council yesterday (Wednesday 15th) senior government official James Blythe said the council had shown improvement since 2025.

Blythe said: “Ministers recognise clear progress in strengthening leadership, governance and financial management.”

He said these included the appointment of permanent senior managers, a plan to strengthen finances and “significant improvement” in children’s services.

However, Blythe said the improvement was “uneven”. He pointed to a recent inspection that found the council’s adult social services department “requires improvement”.

He added: “Many improvements remain at an early stage and must be underpinned by longer-term stability in the authority’s senior officer leadership.”

Labour mayor Hussain described the announcement as an “extension” – although Blythe said the notice would “remain in place until we confirm otherwise”.

It will only be “reviewed” in November – six months after its first yearly review in May this year.

Hussain said: “We welcome the review and extension of the best value notice for a further six months.

“Over the last year the council has undergone significant change and improvement, making real progress towards a more sustainable and transparent approach to overcoming the financial challenges we are facing.”

He added: “We have turned a corner but have much more to do to be the council our residents deserve.”

The announcement comes as the council’s temporary top boss, Paul Martin, is set to be replaced in August by Maria Christofi, who will take up the role permanently.

Martin, who was appointed on an interim basis in 2025, had previously told councillors he hoped the government would lift the notice after the May review.

Speaking in January, he said he would argue that the council had improved enough to “not be of concern to national government”.

At his final full council meeting last Monday (13th) Martin told councillors he was “optimistic for Newham’s future” as its leadership “worked as a team much better.”

Martin said: “In the mayor and in Maria, Newham has got leaders who recognise that no single person can achieve anything in local government.

“No individual person can achieve anything at all here. It does require teamwork, and I do believe that the council understands that.”

No news is bad news

Independent news outlets like ours – reporting for the community without rich backers – are under threat of closure, turning British towns into news deserts.

The audiences they serve know less, understand less, and can do less.

If our coverage has helped you understand our community a little bit better, please consider supporting us with a monthly, yearly or one-off donation.

Choose the news. Don’t lose the news.

Monthly direct debit

Annual direct debit

£5 per month supporters get a digital copy of each month’s paper before anyone else, £10 per month supporters get a digital copy of each month’s paper before anyone else and a print copy posted to them each month. £50 annual supporters get a digital copy of each month's paper before anyone else.