Reforms to target profiteering providers and "loss" of UK high streets

(Alliance News) - UK Communities Secretary Steve Reed said the profits of firms exploiting high demand for vulnerable children's accommodation will be capped and powers handed to communities in a bid to restore public trust.

Outlining plans during a speech in London, Reed promised to ramp up the "devolution revolution", as he stressed the public know better than politicians about what needs to be done to improve lives.

Reed took aim at "private equity companies and multinationals" providing children's homes, accusing them of having "no concern for local communities".

Highlighting that these firms generate average annual profits per child of GBP45,000, he added: "It is pushing councils to the brink financially, well it's exploitation and we will root it out."

Fixing the "broken" placement market and "putting children first", alongside boosting fostering capacity and early intervention, would drive down profiteering, Reed said.

Referring to work being done by Education Secretary Bridget Phillipson, he added: "Bridget and I will not flinch from capping the profits of private providers placing vulnerable children in care.

"Business is an essential partner in the provision of good public services, and any good business deserves to turn a decent and fair profit, but profiteering is not good for business or for taxpayers.

"And most of all, it is not good for vulnerable children who deserve our support."

Turning to rundown high streets, Reed said people feel a "profound sense of loss when a place that used to be full of life and joy is instead boarded up, closed down and covered in graffiti".

He said councillors and communities want to take action, but "they simply don't have the power they need".

Referencing vape shops, bookmakers and barber shops "with no customers", Reed said the government will give councils more power to restrict the "kind of shops that bring the area down" and utilise empty premises.

Reed said a new "neighbourhood guarantee" would set out expectations at local, regional and national level "to bring about real change that can be seen and felt" in every community.

He added: "The guarantee will include clear expectations for keeping your street clean, removing fly-tipping, filling in potholes, tackling overhanging trees and keeping the lights on at night.

"It will include your right to a named police officer so you can report antisocial behaviour and expect action to put a stop to it.

"And it will make clear how you can find a local GP, dentist, family hub, library or youth services in your neighbourhood."

Reed said a new digital tool will show progress towards the guarantee in every neighbourhood.

He added: "We will e clear where responsibility lies, and we will hold to account those who fail to do the job that is expected of them.

"And yes, that means Whitehall too. Everyone will be guaranteed a basic level of services that shows respect for them and respect for their community."

The government has previously given regional mayors a "right to request" new powers and handed them greater responsibility over new transport schemes.

Reed said the government is "exploring further devolution" ahead of the autumn budget.

A series of "community power" pilots will be launched to encourage councils, groups and residents to collaborate on ideas on how to improve the delivery of services.

Citing examples of successful community-led initiatives, Reed said they flourished "because people know better than politicians, to be frank, what needs to change and we need to be listening to them know."

By Jonathan Bunn, Press Association Political Reporter

Press Association: News

source: PA

Copyright 2026 Alliance News Ltd. All Rights Reserved.