Lord Harris of Haringey has incurred the wrath of the ruling Labour councillors in Waltham Forest by challenging them over the misuse of money allocated from the Neighbourhood Renewal Fund. The police are investigating whether fraud has taken place and an investigation is under way. But it is already clear that money has been mispent. Harris calls it a "developing scandal." His says their behaviour has been charcterised by delaying tactics hoping the problem would go away.

Money handed over without proper checks. There was a failure to monitor outcomes properly – in one instance involving non-existent children. Money intended for the five most deprived wards had been spent elsewhere. £47,000 had not been reclaimed despite the organisation it was handed to acknowledging that the work had not been carried on.

The new Chief  Executive has proposed a wider investigation into all the Council’s procurement processes.