Reed pledges to complete local government reorganisation within this Parliament

Speaking at the Local Government Association's annual conference on Monday (7 July), Reed said the Government remained committed to replacing two-tier local government with unitary authorities to support its wider devolution agenda.

"We took the decision to end two-tier local government with its costly duplication so we could plough the savings back into frontline services, and get regions ready for the mayoral devolution that will follow," he said.

"I make no apologies for being ambitious about this – we will complete reorganisation within this Parliament because we need devolution to happen at pace so we can rebalance wealth, power and opportunity across our country."

He added that ministers would implement the reforms "in a way that listens to you in local government" and ensures "service safety is not just maintained, but is paramount".

The Government has already confirmed reorganisation proposals for a number of areas, with further decisions expected next week.

Alongside the reorganisation programme, Reed said the Government wanted to pursue "double devolution", arguing that power could become "over-centralised locally as well as nationally".

"Residents can feel just as shut out by the town hall as by Whitehall if it refuses to listen to them," he said.

"That's why I want to put power directly into the hands of local communities and public service users as well as their elected representatives."

Reed also announced plans for a new "Neighbourhood Guarantee", setting out the minimum standards residents should expect from councils.

The guarantee will sit alongside a wider performance and accountability framework that includes the Local Outcomes Framework, a new Local Audit Office and updated Best Value guidance.

Reed said the first Local Outcomes Framework results would be published later this year, while the Local Audit Office would ensure audits were "timely, robust, and can identify problems before they become crises".

The Government will also consult on revised Best Value guidance, which Reed said would strengthen standards while avoiding unnecessary burdens on councils.

Under the proposed Neighbourhood Guarantee, residents would be able to hold councils to account for issues including clean and safe streets, well-maintained parks and green spaces, and the prompt removal of fly-tipping and graffiti, he said.

Turning to local government finance, Reed acknowledged that "many councils are still facing huge financial challenges" despite recent funding increases. He reiterated the Government's intention to intervene in the children's social care placements market, arguing that excessive profits were placing unsustainable pressure on council finances.

According to Reed, the 15 largest children's social care providers, including private equity-backed firms, make average operating profits of £45,000 per child, while some councils are paying up to £1m for a single placement. "We can't let this continue," he said.

"The Education Secretary and I will not flinch from capping the profits of private providers to prevent this kind of exploitation that damages communities and pushes so many councils to the brink financially."

Reed also highlighted the Government's housing programme, describing council housebuilding as a key priority.

He said more new council and social homes had been built last year than in any year since records began 40 years ago and pointed to the £39bn Social and Affordable Homes Programme as supporting the "biggest increase in social and council house-building in a generation".

The Housing Secretary said ministers had also delivered rent convergence for councils, introduced legislation to prevent newly built council homes being lost through Right to Buy, and reformed the planning system to accelerate housing delivery.

Adam Carey