Local Government Reorganisation 2026
Reed announces plan to define role of mayors and strategic authorities in public service reform and procurement
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Government plans to form a ‘task and finish group’ to define the roles of mayors and strategic authorities in public service reform are among a raft of new local government reforms announced by the Secretary of State for Housing, Communities and Local Government.
In a written ministerial statement on Tuesday (16 June), Steve Reed also announced a crackdown on profiteering in children's services accommodation, expansion of the ‘right to manage’ in social housing, and action on local government data sharing.
He told Parliament that the new task and finish group for mayoral strategic authorities will look at "how strategic authorities could play a role in driving better procurement, commissioning and delivery of local public services".
Reed said he believes local authorities should retain autonomy in procuring the services they are accountable for and remain responsive to local needs and community concerns.
"However, we want to build a system where they can benefit from increased market power and knowledge that pooling resources at regional level can provide, to crack down on profiteering," he added.
Reed meanwhile revealed plans to improve data sharing between local authorities through the introduction of a range of data products and services "designed to facilitate greater collaboration on data sharing and interoperability".
He said the Government will develop standardised data-sharing agreements for central government and the wider public sector - including local government - to use, reducing administrative burdens and speeding up processes.
The speech meanwhile confirmed £15m in funding for a programme of 'community power pilots', aimed at supporting councils to work with community groups and residents to deliver community-led and locally responsive services. These services would include youth provision, community safety, housing and green spaces.
In addition, Reed announced £61m in funding for a new Pride in Place Community Right to Buy Fund, to help communities take ownership of valued local assets such as pubs, clubs and community centres.
Other funding announcements included a new £10m Test, Learn and Grow Capability Fund, which will help councils and mayoral strategic authorities explore different ways of delivering public services.
The Secretary of State also announced new plans to "drive out profiteering" from children's social care and temporary accommodation provision.
As part of this, the Ministry of Housing, Communities and Local Government (MHCLG) is working alongside the Home Office and with London councils signed up to the London Accommodation Management Agreement to bring consistency and value for money to the procurement of temporary accommodation, he said.
Elsewhere, Reed said the Government plans to consult on whether there is a case to give social housing residents living in housing association homes the right to manage their properties.
In addition, the Government aims to introduce better support and oversight in the Right to Manage system, including stronger enforcement action in the event of serious mismanagement where residents' safety is put at risk.
A ‘Place Unit’ has meanwhile been set up, based in the MHCLG and acting as convenors across departments, local stakeholders and community and place experts. “They will provide an advisory function to other departments, ensuring that place and community are considered in policy development and helping bring local voices into central government decision making.”
Communities Secretary Steve Reed said: “I am pushing power out of Whitehall and into the hands of the people who actually use these high streets. They know what they need better than any politician in Whitehall.
“We’re backing communities to step in and save these high street gems, building on our drive to give communities the key to their own future and power over what matters to them.”
Adam Carey
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