The mayor hopes that a councillor’s prosecution for fraud will send a “tough and clear message”.

Cllr Shahed Ali, the Independent Party councillor for Whitechapel, pleaded guilty at Snaresbrook Crown Court last week to one count of housing fraud under section three of the Fraud Act 2006.

He failed to notify the council of a change in his circumstances between the date that he applied for and the date he accepted a council tenancy, Snaresbrook crown court was told.

John Biggs, the Mayor of Tower Hamlets, said: “For an elected representative this is particularly shameful behaviour and a scandalous breach of trust.

“After the criminality and corruption of the previous administration, of which Shahed Ali was a part, it is I suppose of little surprise that he would intentionally rip off the residents he was elected to serve.

“In my view anyone who tries to defraud taxpayers has no place sitting on the council. If he had any integrity whatsoever he would apologise and resign. Indeed he should have done that months ago.”

The council has said it will await the outcome of sentencing on Thursday, October 27.

Cllr Ali, who previously served in disgraced former Mayor Lutfur Rahman’s cabinet, could be disqualified as a councillor under the 1972 Local Government Act if he is jailed or given a suspended sentence.