'More freedom' for local councils

Councils are invited to bid for a taste of the new financial freedoms

Local councils are being promised more freedom over spending in a 10-year strategy unveiled on Tuesday.

Under a new scheme to be trialled in nine English areas, councils will less frequently be told how to spend central government grants.

However some local government leaders are angry that other recent decisions contradict talk of devolving power.

The plan does not deal with council tax or business rates, both of which are subject to independent inquiries.

Deputy Prime Minister John Prescott said the document was designed to kickstart a debate on the future of local government.

He says he wants to build a shared vision between ministers, councils and other groups.

The main themes are:

• Vibrant local leadership, including finding new ways to recruit councillors and improve the image of local government

• Greater public participation, including possibly giving people a strong voice in smaller areas within local councils, such as creating new parishes

• Service delivery, with a "new relationship" between Whitehall and local councils

• A new settlement between central, local and regional government, including reforms to the funding systems.

As well as the broad strategy, Local Government Minister Nick Raynsford has published details of the first Local Area Agreements.

We want councils and their partners to find local solutions to local problems Nick Raynsford Local Government Minister

Starting with nine pilot areas next year, councils signing the deals would have up to 70 funding streams merged into three.

Councils would negotiate clear targets for the three areas - children and young people, safer and stronger communities and health and older people.

But they would then be given more choice about how to achieve the targets locally.

Local authorities would have to bid to be part of the scheme.

Public voice

Mr Raynsford called the plans a "radical new approach in the relationship between local and central government".

"We want councils and their partners to find local solutions to local problems. We want to cut red tape and bureaucracy," he said.

"And we want the public to have a greater say on the issues which concern them."

Local government leaders have complained recently about ministers capping council tax at some authorities and planning to change the responsibilities of local education authorities.

Sir Sandy Bruce-Lockhart, chairman of the Local Government Association, strongly welcomed the new strategy but said it would only work if all Cabinet ministers delivered on the proposals.

"Local Area Agreements, where all bodies spending public money can meet locally to deliver joined-up services with one pot of money, show a concrete way forward, provided they are democratically accountable to the public via the leadership of the local council," he said.