Reform leader Nigel Farage, writing on X, external, said: “We took this Labour government to court and won.
“In collusion with the Tories, Keir Starmer tried to stop 4.6 million people voting on May 7th. Only Reform UK fights for democracy.”
The government has agreed to pay Reform’s legal costs relating to the proceedings, which a party source said would be at least £100,000.
In a letter to council leaders, Reed said the government had written to the High Court to confirm he had decided to withdraw the original decision.
The statement said: “The secretary (of) state invited the housing minister, who was not involved in the initial decision-making, to reconsider the position afresh on a very urgent basis recognising the pressing timescales involved.
“The housing minister has decided that the elections should proceed in May 2026.”
Reed said he recognised that many of the councils undergoing reorganisation “voiced genuine concerns about the pressure they are under” as part of the reforms.
He added that the government would provide an extra £63m to the 21 areas affected.