The Government has announced plans to crack down on profiteering by private companies providing services to councils, with children's social care providers facing the prospect of a statutory profit cap.

Ministers have legislated to introduce and enforce the cap if market monitoring shows it is necessary, as part of a wider package of reforms aimed at fixing what they describe as a broken placements system.

The changes include expanding fostering provision, supporting families earlier and reducing reliance on residential care.

The profiteering crackdown forms part of a broader set of announcements published today under the banner of a new Neighbourhood Guarantee – a set of minimum standards local people can expect from public services, covering everything from clean streets and filled potholes to high street quality and community safety.

Alongside the children's care reforms, councils are being given new powers to restrict the proliferation of vape shops and gambling premises on high streets, take over empty properties and co-design local services through new Community Power Pilots in up to 25 areas.

Mayors are also receiving additional powers, including the ability to approve major transport projects such as new tram networks in their areas. Communities Secretary Steve Reed said the Neighbourhood Guarantee would set standards local people could hold public services to account against.

‘People want to live in neighbourhoods where streets are clean and safe, the high street is vibrant, and core public services are available. But too often this isn’t what happens,’ he said.

‘The Government’s new Neighbourhood Guarantee sets minimum standards local people can expect to see and hold public services to account. And if things don’t improve, there are new powers to force change. This is all about showing respect for the places people call home.’