The former leader of Lambeth Council has been appointed the government’s new Minister for Housing following a reshuffle launched in the wake of Angela Rayner’s resignation over her controversial tax affairs.
Reed has been moved from his old job as the Environment Secretary to the department for Housing, Local Government and Communities, succeeding Angela Rayner.
He headed Lambeth Council for six years between 2006 and 2012 before standing for election as the MP for Streatham and Croydon North in a by-election in 2012.
Now he will take on responsibility for Labour’s pledge of building 1.5 million homes before the next Parliament – a target which looks increasingly ambitious.
At least 38,780 new homes were completed between January and March this year, which is half the amount that would need to be built to meet the target, according to figures from the Office for National Statistics.
As the leader of Lambeth Council Reed was regarded as being pro-development, co-chairing the Vauxhall Nine Elms Battersea board, overseeing one of Europe’s largest regeneration projects delivering 20,000 new homes. He also initiated Lambeth’s first estate regeneration programme to modernise and improve the council’s housing stock.
London councils will be hopeful that his appointment could also spell the end of Labour’s plans to reform the local authority funding model, which leaders have warned could leave boroughs with multi-million pound gaps in their finances.
Southwark Council has warned it could face a £70 million black hole over three years if the proposed changes go through.
Responding to the news of Reed’s appointment, Cllr Claire Holland, Chair of London Councils, said: “We welcome Steve Reed’s appointment as Secretary of State and look forward to working with him to deliver on our shared priorities.
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“He is someone who knows the local government sector inside out and recognises the challenges facing boroughs in the capital, as well as the huge opportunities which exist to bring about positive change for our communities.
“Boroughs are determined to deliver – whether it’s building new homes or driving economic growth. After more than a decade of structural underfunding, fixing the crisis in local government finances is vital to ensuring we can play our part.
“We look forward to working in positive partnership with the new Secretary of State on these issues, particularly as work continues on the proposed reforms to local government funding.”
