Local Government Association Conference 2026 - Speech by Local Government Secretary Steve Reed on July 7

A speech from the Local Government Secretary Steve Reed at the Local Government Conference.

"Congratulations first of all to Eamonn on being elected to his new role, very very important and I know he will do a fantastic job for the LGA. And it's fantastic to be here myself.  

I've attended this conference many times over the years as a council leader initially, but I think the last time I had the chance to address you was five years ago when I gave a speech from my dining room table, duringthe tail end of the pandemic. 

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I am immensely proud of the progress we have madesince the General Election. 

And we have donethatin partnership with all of you here local and national government workingtogether to make a difference for our communities.  

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I'vespent the past ten monthsrebuilding the foundations for a more sustainable local government sector.Today I want to make the case for what I believe must come next.  

Regional inequalitiesin this countryare sogrotesque that although ours is the second-richest country in Europe,seven out oftheten poorest regions in Northern Europe are in England.That fact tells youhowthis country is being pulled apart and why we need radical change. 

We are one of the mostover-centralised countries in the developed world.Power is heldin too few hands. 

That'swhy this government is pursuing the most radical programme of devolution in our history, reorganising local government and bringing in new regional mayors to get power out of Whitehalland into the hands of people up and down this country. 

Butpower can be over-centralised locally as wellas nationally.Residents can feel just as shut out by the town hall as by Whitehall if itrefuses tolisten to them.That'swhy I want to put power directly into the hands of local communities and public service users as well as their elected representatives.Double devolution that putscommunitiesin control.Abuilding block that was missing from our early reforms. 

But now, we are making real headway. 

I'veset up a Place Unit in Whitehall to bring together government departments to supercharge neighbourhood working.Effectiveplace-baseddeliveryrequires service integration at the local level, collaborative partnerships including business' and the third sector, and pooled budgets that can be redirected to meet locally defined priorities. 

It'sWhitehallthat'sbeen standing in the way of this, protecting their own power instead of working together.It'smy job to end that andopen upthe space for innovation with a more radical version of Total Place. 

OurCommunity Power Pilots,backed by£15mof newfunding,willsupportcouncils and communities to innovate with radicalnew approachesto meeting residents' needs.A £61m Community Right to Buy Fundwillletcommunities take control ofmuch-loved local pubs, venues, and community centresif they face closure. 

We will reformhow weprocureto bring inmore small, community-led providers, focused on outcomesand social value.Newplace-based budgetpilotswilltesthow far we cango withpooled budgets,joinedup services, and giving places the power to experiment in howtorunthingsdifferently and better.  

These pilots willoperatealongside so many public services already showing the power of neighbourhood working, co-production with service users, collaboration across sectors.These are the pioneers forcommunity power, which must beanessential part of meaningful devolution. 

I learnt first-hand that local government is at its best whenitshares power withthose it serves. 

Back when I was a councillor, I helped a housing estate in Brixton set up a residents' management organisation where their housingmanagersreport into an elected residents' boardrather than to officials in the town hall. 

And services on that estate have improved dramatically ever since. 

I saw community groups come together to makea huge impactin reducing violent youthcrimewhen the councilopened upits funding and spaces to their ideas. 

And I saw a dying covered market brought back to life when a social enterprise brought together businesses, owners and the council andopened upempty units to start-up businesses on low or no rent for the first few months of their existence.It's become a fantastic example of community-led regeneration. 

When communities have more control, they use their energy and creativity tofind answers.They push services towards preventing the problems in their lives rather than simply trying to managing them.And they join services up in ways that respect the relationships that sustain us as human beings rather than carving them out as ifthey'reof no value. 

We'veput those principles at the centre of our Pride in Place programme.Nearly 300of the poorest communities will get up to 20 million pounds each to transform life and life chances in their areas.But most exciting of all,it'slocal people who will take the decisions about how that money gets spent, becauseit'slocal people who know best what needs to change in their own area. 

Just like that estate in Brixton,we'llgive people the power they need to get the change they want to see. 

Thisnew approachto decision-makingis powerful enough tochange every community in our country, butto make it happenI know we need change from Governmenttoo. 

As a baseline,local government needs to stand on firm foundations. 

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Fair Funding has reconnected a bigger funding pot with deprivation and need. 

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We agreedthe first multi-yearfundingsettlement in adecadeso councils have the confidence to plan. 

And we took the decision to end two-tier local government with its costly duplication so we could plough the savings back into frontlineservices, andget regions ready for the mayoral devolution that will follow.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,powerand opportunityacross our country.But we'll do it in a way that listens to you in local government and we'll do it in a way that ensures service safety is not just maintained, but is paramount.  

Thisisn'tjust about reorganisingcouncils.It'sabout a radical transformation in how local services work for local people,opening uppower to our regions and our communities, reshaping the local state and local democracy.It'sourchance to shape a better future for our communities.And that, my friends, is not something we can afford to slow down.  

Manycouncils are still facing huge financial challenges.As we continue to grow the economythere will bean opportunity forfurther funding increases.But we must make sure that every penny we spend, is spent well.And one area where we need immediate change is in tackling profiteering. 

Inchildren'ssocial care, the 15 biggest providersincluding private equity fundsmake an average operating profit of £45,000 for every child.Some councils are being forced to pay up to £1m for a single child becausethey haveno alternative. 

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

Wewon'thave strongcommunitiesif wedon'ttackle the housing crisis. 

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Thisgovernment is fully committed to a step-change in council-house building.Last year, we built more new council and social homes in one year than in any other year for 40 years when records first began.This year, we opened the first phase of the £39bn Social and Affordable Homes Programme to fund the biggest increase in social and councilhouse-buildingin this country in a generation. 

Councils asked for the certainty of rent convergence, and you got it.And our new Social Housing Bill, going through Parliament right now, changes Right to Buy so new council homes are protected from being sold off so you have the confidence to go ahead and build them. 

Our changes to planning laws and regulations speed up the time it takes to get spades in the ground and build the homes we need.I strengthened those changes as soon as I came into this job. 

And recognising theparticular challengefacing London, where housebuilding of all tenures had ground to a near halt for almost three years, I worked with Sir Sadiq Khan, the Mayor of London, to agree an acceleration package that willget the capital building again. 

Working together my friends, we will end the housing crisis once and for all. 

Councilsare gettingmore power, and more funding, to improve the way you serve local communities.But residents need to know their local council is serving them well.government also needs to be clear about its expectations. 

The Local Outcomes Framework set out those expectations in February, and the first results will be published later this year.The new Local Audit Office will make sure audits aretimely, robust, and canidentifyproblems before they become crises.And we will publish and consult on new Best Value guidance. 

Together, these measures will bring about a stronger focus on standards without overburdening the sector as happened in the past.They will make it clear where responsibility lies,who is accountable for improvement, and what support is available whenit'sneeded. 

To make this more meaningful for residents, I will introduce a new Neighbourhood Guarantee outlining the basic standards everyone in every community can expect.People judge their council  and often politics much more widely  by what they see on their doorstep and in their neighbourhood.They expect and they deserve clean, safe streets,well keptparksand green spaces, fly tipping and graffiti cleaned up before it turns the whole area into an eyesore that attracts crime and anti-social behaviour. 

That'swhat they will now get, with a Neighbourhood Guarantee they can hold councils to account for, and a new standards system, to drive improvement across the sector. 

In the past two years, this government has laid the foundations for a revolution in local government.We are pushing power down and out, into our regions, and directly into our communities. 

We'redoing it because thismust become a country that works for everyone, everywhere. 

We need to be a country where opportunity is open to everyone, where every town can thrive, where every community feels listened to and respected, where every neighbourhood is a place to feel proud of, a place to call home. 

That requires change, and you are the people on the frontline who will make that change happen. 

I knowwhat'sneeded because, just like you,I'vebeen there and done it.But I recognise, like each of you,that I'mjust one link in a long chain of change thatwe'reall part of. 

When I talk to councillors, council officers, partners from the public, private or community sectors,I'malways struck by the passion you have for the communities you serve.The difference you make, often in the most difficult circumstances, isinspirational. 

So I mean it when I say thank you for what you do.Because you change livesevery dayin every community up and down this country. 

I know how ambitious you are to do more and to do even better. 

My job is to help you achieve that. 

Together, we are building a better country, and we're doing it one community at a time. 

Thank you."