Tower Hamlets mayor: the day I have to make cuts, it'll break me

http://www.guardian.co.uk/society/2013/jan/22/tower-hamlets-mayor-lutfur-rahman

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Lutfur Rahman's name is usually prefixed with the word "controversial". It is an apt description of the first directly elected mayor of Tower Hamlets, in east London. He is the council's ex-Labour leader turned independent mayoral candidate who won 2010's election amid political intrigue, mudslinging and alleged links to Islamic fundamentalist groups – allegations he has repeatedly and categorically denied. His win, with 51% of the vote, handed Britain its first Muslim and Bangladesh-born executive mayor and the Labour party an intractable gulf between national leadership and grassroots activism.

In a swath of the capital where the left-leaning politics are best described as "colourful" (Labour MP Oona King was defeated by Respect's George Galloway in 2005, Labour's Rushanara Ali won it back in 2010), around two years after Rahman's inauguration the tensions are still palpable. Depending on who you listen to, he is either Islamifying the East End or championing a deprived community with a holy political grail in his grasp: protecting frontline services against cuts.

The council has just outlined its three-year financial plan. Rahman has pledged not to close libraries, children's centres or leisure centres and will keep home care free for people with "critical" and "substantial" needs.

Is it time that Tower Hamlets, a political morass and England's third most deprived authority where half the 250,000 residents are from black and minority ethnic (BME) backgrounds, mostly Bangladeshi, be looked at afresh? Rahman thinks so. "Judge what we are doing as an administration, as a council. Judge our community and our strength of community cohesion rather than what you hear or read," he says.

Scrape aside the mud slung around in recent years and focus on the facts: Rahman ran independently, endorsed by Ken Livingstone, after deselection by Labour's national executive committee following allegations about the eligibility of participating voters and links to fundamentalism.

Born in Bangladesh and raised in Bow, east London, Rahman gave up his job as a solicitor for the £65,000-a-year mayoral post controlling a £1bn budget. He describes himself as a community activist and social democrat. His cabinet comprises Labour defectors. The council has 27 Labour councillors, 14 independents, seven Conservatives, two Respect and one Liberal Democrat.

Since his election, the number of primary children in the borough achieving English and maths at level 4 or above has risen from 76% in 2011 to 82% in 2012 (the national average is 80%). The council is building new local homes for rent. It completed more than 2,000 affordable homes in 2011-12 and has been awarded £16m from the government's new homes bonus scheme, the largest allocation made to any council.

Other progress includes the launch of an energy co-operative, Tower Hamlets Energy, to cut residents' fuel bills, and the long-awaited £36m redevelopment of Poplar Baths, at a time when many councils are closing their public swimming pools.

Impressive, but can the books balance without service cuts? "It'll break me as an individual, a politician and a resident the day I have to make cuts to our frontline services. We have to avoid that," Rahman replies. The financial plan outlines cuts of £26.7m to 2015-16 via a "leaner workforce", maximising assets – such as vacating underused offices – and joint, or "smarter", procurement of services with other councils. Using general reserves (£32.9m this year) will soften the savings blow, says the plan, as long as reserves remain above the recommended minimum of £20m.

The closure of an office block will save £7m in a year, with £29m cut in ICT costs over seven years under a technology outsourcing deal. More savings have been found by shedding staff, partly through voluntary redundancy – around 500 fewer people are employed by the council than in 2010. Abolishing the post of chief executive, in line with other councils, and instead employing a "head of paid service" will help.

Further savings will come with a proposed cross-borough publication contract, allowing seven authorities to pool their council publications such as the £1m a year East End Life magazine. A joint commissioning framework with neighbouring Newham for Supporting People, a programme of independent living services for vulnerable residents, should encourage more efficient procurement.

Rahman's intention to sell Henry Moore's Draped Seated Woman has aroused fury in the art world. He is irked by accusations that the sale of the £20m piece of art bequeathed to the borough by the artist and currently on loan to the Yorkshire Sculpture Park will undermine the East End's cultural heritage. "I'm all in favour of art and sculpture, but it's got to be of use to our residents," he says. "If anyone in the community wants to give us that money and put it on display, they are more than welcome to do so."

Are these savings enough? The council's Labour group suggests there is no long-term financial vision. The financial plan to 2015-16 acknowledges that while the council is on track to deliver a balanced budget to 2015, "some savings will still need to be identified towards the end of the period [2015-16]" and "savings targets of £20m-£30m a year need to be addressed" if forecasts of prolonged austerity are correct.

Rahman replies: "So far we've been fortunate, we've been prudent, we've not had to cut any frontline services … our books are balanced now; we will have to have another round [of savings] once the [next] settlement is made – we will know what the level of cuts will be." Much of the savings rest on cross-borough procurement, but such collaboration is hard to imagine given Rahman's rivalry with neighbours Newham and Hackney. Yet he refers to a "family of East Enders", batting away suggestions the family is dysfunctional. "Of course we have differences, like family rivalries," he says.

Rahman has faced vitriolic criticism from political detractors and rightwing commentators, something he describes as "disappointing" and "frustrating". Factionalism and mudslinging, he says, are common in politics. "What inspires and energises me is the community."

He stresses that he represents the entire community – not just Bangladeshi voters – and he has links with different faith leaders. Yet this all-embracing approach is not reflected in the predominately BME and totally male coterie surrounding him before the interview. His part-time communications adviser is Mark Seddon, a former editor of Tribune.

Labour will want Rahman ousted at the 2014 elections. He wants to stay in office but return to Labour's fold. He can unite the party, he says, bridging the chasm between national leadership and the rank and file. He hints party leaders are missing a trick in Tower Hamlets. "It can only serve our residents well and the [Labour] party well if we are united going into a local election, going into a general election – disunited [this situation] can put the party at risk," he says. "Ed Miliband and the party have a responsibility to unite the party and give our community a strong leadership, and we [independent councillors who left Labour and grassroots activists] can give that leadership, and I can unite the party."

Is he imagining a role as an MP? "No, no, no – simply, I want to continue the role I'm in if I get the chance. I'm interested in being the mayor of this borough," he replies.

Maybe the real story of this deprived borough is more prosaic than the political intrigue that surrounds it; there is a practical short-term budget, some good, proven policies and admirable aims, but despite Rahman presenting himself as fireproofing the frontline, there is little long-term guarantee against frontline cuts. What a shame for the East End that there is the inkling of a way, but no united political will.

Curriculum vitae

Age 47.

Lives Spitalfields, east London.

Family Married, with a son and daughter.

Education Lawdale and Marner primary schools, Bow secondary school, Tower Hamlets; City University, law degree; Law Society solicitor's finals.

Career 2010-present: directly elected independent mayor of Tower Hamlets; 2002-10: head of family and children's department, and partner since 2003, at McCormacks law firm; 1995-2002: solicitor, Maxwells Solicitors, London; 1993-95: trainee solicitor, Maxwells Solicitors.

Public life 2008-10: leader, Tower Hamlets council; 2002-10: councillor, Spitalfields and Banglatown ward, Tower Hamlets; 2003-05: lead member for education and youth services; various roles including non-executive director for Barts & The Royal London NHS trust; founding member of the Phoenix Youth Project and the Bow community school.

Interests Community work, reading and spending time with family.