Chinese embassy decision delayed as new housing secretary takes post

Reed, the MP for Streatham and Croydon North, was appointed on Friday (5 September) to head the ministry for housing, communities and local government following Angela Rayner’s resignation as housing secretary, deputy Labour leader and deputy prime minister. He was previously environment secretary.

Rayner’s departure came in the wake of the controversy surrounding an underpayment of tax on a property purchase.

Her final decision on the headline-grabbing Chinese embassy plans by David Chipperfield Architects had been due on or before 9 September (tomorrow). However, the AJ understands, the decision had been delayed to consider extra information received over the summer.

The planning inspector’s report had already been handed to Rayner and has now been passed on to Reed. A final decision is now expected on or before 21 October.

The building is proposed for the former Royal Mint site in Tower Hamlets, near the Tower of London.

Last month, Rayner asked the Chinese UK embassy to supply further information over ‘blanked out’ sections of the Chipperfield scheme, which had been ‘redacted for security reasons’, the BBC reported. These include drawings seen by the AJ for the Cultural Exchange Building and Embassy House elements of the application.

Rayner also reminded China of requests made by then-home secretary Yvette Cooper and then-foreign secretary David Lammy for a ‘hard perimeter’ around the embassy to solve concerns over public safety. However, tackling this could involve submitting amended plans. In Friday’s cabinet reshuffle, Cooper was made foreign secretary and Lammy became deputy prime minister and justice secretary.

As it stands, diplomatic inviolability would mean emergency services needed permission from the Chinese ambassador to access the small, paved forecourt and the pavilion, for example, in the circumstances of a health issue with a member of the public visiting the centre.

But China has not signalled that it will amend its plans. Christopher Katkowski, representing the Chinese government at the planning inquiry into the scheme in February, told the inquiry that his client had ‘no desire or intention to change the scheme in the way in which it has been suggested’.

In addition to deciding on the China embassy, Reed will take over Rayner’s housing ambitions to build 1.5 million homes in this parliament. At the same time, planning reforms in the shape of the Planning and Infrastructure bill are currently snaking their way through parliament.

Reed reportedly told civil servants on Friday (5 September) that he wanted to ‘build, baby build’. The Telegraph reported that he informed the department that it would ‘move on to the next stage in unleashing one of the biggest eras of building in our country’s history’.

Despite planning reforms and Rayner’s drum-banging, housing delivery collapsed in the last quarter.

In July, research by the National House Building Council revealed that only 904 new homes were registered in London in the second quarter of 2025, down by 59 per cent from the same period last year. And industry tracker Glenigan recently reported that the residential sector ‘faced pronounced headwinds’, with overall starts down 18 per cent in the three months to the end of August compared to the previous three-month period.

Private housing fell 16 per cent during the Index period and 16 per cent compared to the previous year. Social housing fared even worse with activity slashed by almost a quarter (down 24 per cent) to stand 17 per cent lower year-on-year, according to Glenigan.

Responding to Rayner’s resignation and the appointment of her replacement on Friday, British Property Federation chief executive Melanie Leech said: ‘We hope the next secretary of state will continue Angela Rayner’s robust support for the builders, not the blockers, but will also take the opportunity to rethink policies which are damaging confidence, such as the surprise ban on upward-only rent reviews and the delayed homes penalty.

‘Most urgently, however, the new secretary of state must work with the sector to tackle viability issues and ensure barriers to delivery are addressed. This includes a laser focus on resolving delays at the Building Safety Regulator, which are having a chilling effect on new development across the country.’

Bell Phillip director Jay Morton, founder of Architects for Labour, added: ‘Rayner’s resignation is disappointing and a real loss. Someone from Rayner’s background rising to the role of deputy prime minister and secretary of state is inspirational to many.’

‘Sadly, the media will hound especially women. Politicians on the left, in particular, are expected to be even more by the book than their Conservative counterparts. I hope her replacement brings the same level of drive and energy. She has set strong foundations, so there is no doubt they will.’

Pitman Tozer co-founder Luke Tozer, told the AJ: ‘Angela Rayner’s resignation is a loss to housing at a time when continuity and certainty are desperately needed. Her lived experience brought weight to the debate … the sector will be looking for steady leadership and clear commitment to addressing the housing crisis without further disruption.’

As environment secretary, Reed set up a circular economy taskforce. Speaking at the Allies and Morrison-designed Dock Shed in March, he said: ‘We can and we must get better use out of our materials and eradicate waste’ while meeting the 1.5 million homes target.

He formerly served as Lambeth Council leader and was co-chair of the Vauxhall Nine Elms redevelopment.