 In 2002 Labour lost control of Lambeth council to a Conservative/Liberal Democrat coalition and Reed was elected leader of the opposition.After Labour won back control of Lambeth Council in 2006, Reed was appointed the council's leader.During his tenure, Lambeth went from being rated London's worst-run borough, with a one-star rating in the Audit Commission's annual inspection in 2006, to having a three-star rating in 2009.