Ministerial shake-up: Rayner and McMahon out, Reed in

Rayner championed the Government's pledge to build 1.5 million homes over the next five years during her 13-month tenure and implemented a series of changes to planning legislation, including an overhaul of the National Planning Policy Framework.

She resigned last week after it came to light that she had inadvertently paid the incorrect rate for stamp duty land tax on a flat.

In her letter of resignation, she said: "I have long believed that people who serve the British public in government must always observe the highest standards, and while the Independent Adviser has concluded that I acted in good faith and with honesty and integrity throughout, I accept that I did not meet the highest standards in relation to my recent property purchase."

Reed, who is leaving his post as Secretary of State for Environment, Food and Rural Affairs to join MHCLG, spent six years as the leader of Lambeth Council from 2006 to 2012, and was previously Deputy Chairman of the Local Government Association.

He has held a number of local government-related positions, including as Deputy Leader of Local Government Labour, as board member for Children's Services and Employment on London Councils, and Chairman of Central London Forward, a lobbying group representing five inner-London boroughs.

Under Reed’s leadership, Lambeth Council became the country’s first ‘co-operative council’, which involved handing more control to communities and service users over how services were delivered.

In 2010, he said the programme would save money and help the council avoid cutting services amid austerity.

The council still describes itself as a co-operative council, but the model has faced criticism from residents and unions, particularly over issues such as regeneration projects and the running of libraries.

In a short comment on his appointment, Reed said he wished to "build baby, build", in reference to his predecessor's pledge to build homes.

McMahon, who oversaw the Government's reorganisation and devolution programme, meanwhile wished the department and local government "the best for the future".

"I've had a wonderful experience in my role as Minister of State delivering on fixing local government, and driving devolution in England."

Questions have been raised about the future of local government reorganisation (LGR), following the reshuffle, with Reform UK's Kent County Council leader, Linden Kemkaran, voicing a "strong feeling that the government will not push forward LGR in Kent".

The Oldham West and Royton MP also handled Government interventions into councils, having issued numerous directions over the last year.

McMahon added: "Through the year which passed I was able to deliver a local government settlement which created a grant for councils like Oldham with higher levels of deprivation that is due to be now hardwired into the first multiyear settlement for councils in over a decade. That is the start of giving towns like ours the fair funding it deserves.

"I was also able to grow out devolution with new devolution agreements, new mayors and six more planned to follow.

"Alongside the English Devolution and Community Empowerment Bill tabled last week which will deliver a generational shift in power in this country. I'm especially proud of the new powers championed by the Co-op Party for community groups to take on local assets like pubs, sporting grounds and community centres. I hope that work continues."

As part of the reshuffle, Alison McGovern MP was appointed as a Minister of State in the Ministry of Housing, Communities and Local Government. It is not yet clear what her post will entail.

Matthew Pennycook remains as Minister of State for Housing and Planning.

Elsewhere, Emma Reynolds MP was appointed as Secretary of State for Environment, Food and Rural Affairs.

Adam Carey