MHCLG used unauthorised covert intelligence gathering as part of building safety recovery strategy

A unit set up by the housing ministry to pursue those deemed responsible for the building safety crisis engaged in the unauthorised use of covert information gathering, a government watchdog has revealed.

The Investigatory Powers Commissioner’s Office’s (IPCO) annual report 2024, published this week, revealed that it had investigated two incidents reported by the Ministry of Housing, Communities and Local Government (IPCO).

The incidents concern the department’s Recovery Strategy Unit (RSU), which was set up in 2022 by then-housing secretary Michael Gove to investigate non-compliance with building safety responsibilities, specifically the remediation of unsafe cladding.

In October 2023, MHCLG reported two errors involving the unauthorised use of covert human intelligence sources (CHIS) by the RSU, which was led by Colonel Graham Cundy, former head of the Special Boat Service, the Royal Navy’s elite maritime special forces.

CHIS are individuals who secretly gather information by forming relationships with targets, but their use in the UK has been strictly governed by laws like the CHIS Act 2021, introduced after revelations from the UK undercover policing relationships scandal, often referred to as ‘spycops’.

The activity which led to the first error took place in October and November 2022 and the second in April and May 2023.

Concerns about compliance with the Regulation of Investigatory Powers Act 2000 were raised internally in July 2023 and MHCLG undertook internal inquiries and sought legal advice before reporting the matter to the IPCO.

In both cases, external contractors were tasked with using human intelligence sources, which was achieved by using intermediaries with a network of sub-sources in the residential leasehold industry. Only the companies directly contracted by MHCLG knew their client was a government department.

Seven sub-sources were spoken to in relation to the first case and 10 in the second.

“MHCLG took the view, with which we agreed, that this amounted to establishing or maintaining a relationship for a covert purpose within the definition of a CHIS in section 26(8) of RIPA,” said the IPCO report.

It said that, from interviews with individuals working in the relevant team at the time, it was “apparent that MHCLG held very little information as to what activity had been carried out or the product obtained from the sub-sources, having received only a sanitised summary of key points of interest”.

The IPCO therefore met with representatives from the two relevant external contractors who were “able to provide further information together with their own records of the activity which took place”.

“While a substantial amount of background information was gathered, none of it was used operationally,” the IPCO said, determining that the errors “did not meet the threshold for serious error notification”.

At the time, the report said, MHCLG had no policies or procedures to ensure RIPA compliance. It has since ceased intelligence gathering beyond open source research and begun developing appropriate policies.

“We note that MHCLG brought this issue to our attention swiftly and engaged with our investigation in a transparent and cooperative manner,” it said.

“Our 2025 follow-up inspection confirmed that MHCLG has made substantial progress towards implementing all recommended actions resulting from our review.”

The IPCO noted that, due to MHCLG’s absence from the regulations that specify who is empowered to grant RIPA authorisations within a public authority, the department is “unable to conduct covert activity under a RIPA authorisation”.

It said that it expected the Home Office to “rectify this”.

Michael Gove and MHCLG have been contacted for comment.