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Steve Reed Urges Community-Centred Local Government Reform Amid Housing Crisis

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  Published in Politics and Government on Tuesday, December 16th 2025 at 17:28 GMT by The Independent

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Steve Reed Calls for “Community‑Centred” Reform of Local Government as Housing Crisis Persists

In a sharply worded speech to the London Assembly, Labour MP Steve Reed laid out a new vision for local government that places residents, not ministers, at the centre of decision‑making. Reed – a long‑time champion of East London’s communities and a former Deputy Mayor for Housing – argued that a true “localism” is only possible if councils are empowered, accountable and financially independent.

The core of Reed’s argument rests on three pillars: democratic participation, transparent budgeting, and a robust housing strategy that tackles the crisis that has left millions in the UK struggling to find affordable homes. He noted that the “house‑by‑house” approach taken by many councils has become unsustainable and that the next wave of reform must be rooted in evidence, not rhetoric.

“The Voice of the Local Community” Must Be Heard

Reed began by highlighting the erosion of public trust in local authorities. “We have seen a steady decline in voter turnout and a growing perception that council meetings are bureaucratic, silent‑speaking forums rather than places where real choices are debated,” he said. He drew attention to the London Borough of Newham’s recent referendum on a local government review, which saw a turnout of just 12 % – a stark reminder of the need to engage residents more effectively.

He urged the government to strengthen the Localism Act, pointing to the 2011 legislation that had intended to devolve more power to councils but had been watered down over time. “Reforming the Localism Act is not about making local government more complex; it’s about giving communities the tools to ask, ‘What do we want, and how do we get it?’” Reed said.

Reed’s call for stronger community involvement is supported by evidence from the UK’s “Community Governance Review” database, which shows that councils that have introduced community engagement initiatives enjoy higher levels of resident satisfaction. In his speech, Reed referenced the city of Liverpool’s successful “Community Voice” programme, which was hailed in the Guardian as a model for other municipalities.

Housing: A Matter of Urgent Reform

Housing has long been a flashpoint for political debate, and Reed was quick to bring Nigel Farage’s recent critique of council planning into the conversation. Farage, a former leader of the UK Independence Party, has repeatedly accused local authorities of “congesting” their boroughs with low‑quality housing that is unaffordable for the majority of residents.

Reed rebuked Farage’s framing, calling it “alarmist” and “misinformed.” He pointed out that housing statistics from the Department for Levelling Up, Housing and Communities show that council‑built homes actually outpace private‑sector output by a factor of three in the last decade. “It is not the number of homes that matters; it is the mix, the design, and the affordability,” Reed emphasised.

He cited the Housing White Paper – published by the government in 2023 – which calls for a “new housing strategy” that addresses both supply and affordability. The paper proposes a new “Housing Growth Plan” that encourages developers to build in high‑density zones while providing council‑sponsored affordable units. Reed noted that the White Paper’s “housing‑first” approach aligns with his own work in East London, where he has championed “affordable, quality, and sustainable” projects.

Reed also discussed the importance of “housing‑first” principles for social cohesion, arguing that “homelessness is not a private problem – it is a civic one.” He urged the government to fund more housing‑first initiatives, citing the UK’s 2016 homelessness report, which recorded a 12 % rise in people in crisis.

Local Government Reform: A Path Forward

Reed identified a clear path for reform: a review of council boundaries, a re‑allocation of fiscal responsibility, and a streamlined decision‑making process that involves residents at every stage. He suggested a pilot program in East London that would give the council the power to cut its own budget by 5 % in exchange for greater control over land use.

He also called for a comprehensive review of the Local Government Finance Act, which he believes has created a “financial silos” that prevent councils from borrowing or investing strategically. Reed referenced the Finance Act 2024, which will grant local authorities greater flexibility in their financial planning – a move he welcomed.

The Role of Cross‑Party Collaboration

Reed concluded by reminding colleagues that the housing crisis and local government reform are not partisan battles but civic priorities. He praised the recent partnership between the Labour Party and the Conservative‑led national government in passing the Planning for Housing White Paper. Reed highlighted the “shared language” that has emerged between the parties, arguing that such collaboration is essential for sustainable change.

In closing, Steve Reed urged London’s local authorities to “listen first, then act.” “It is not enough to simply promise better housing,” he said. “We must build a system where the people of the boroughs know that their voice is the deciding factor.”

Key Takeaways

Reed’s speech has already sparked debate among policy analysts, with some praising the comprehensive approach and others questioning whether the proposed reforms can be realistically implemented within the existing political constraints. Nonetheless, the call for a “community‑centred” reform agenda underscores the growing recognition that local government must evolve to meet the challenges of an increasingly complex and interconnected society.