A new bill heralding a ground-breaking shift in power to councils and communities overturning decades of central government control was unveiled by Communities and Local Government Secretary Eric Pickles today.

The Localism Bill promises to put an end to the hoarding of power within central government and top-down control of communities, allowing local people the freedom to run their lives and neighbourhoods in their own way.

The Bill, laid before Parliament today, contains a radical package of reforms that will devolve greater power and freedoms to councils and neighbourhoods, establish powerful new rights for communities, revolutionise the planning system, and give communities control over housing decisions.

The legislation will help build the Big Society by radically transforming the relationships between central government, local government, communities and individuals.

For councils the Bill will fundamentally change their freedom to act in the interest of their local communities through a new general power of competence.

Rather than needing to rely on specific powers, the new power will give councils the legal reassurance and confidence to innovate, drive down costs to deliver more efficient services.

Eric Pickles said: "The Localism Bill will herald a ground-breaking shift in power to councils and communities overturning decades of central government control and starting a new era of people power.

"It is the centrepiece of what this Government is trying to do to fundamentally shake up the balance of power in this country.

"For too long, everything has been controlled from the centre - and look where it's got us. Central government has kept local government on a tight leash, strangling the life out of councils in the belief that bureaucrats know best.

"By getting out of the way and letting councils and communities run their own affairs we can restore civic pride, democratic accountability and economic growth - and build a stronger, fairer Britain. It's the end of the era of big government: laying the foundations for the Big Society."

The Localism Bill contains further measures to strengthen local democracy by:

Devolving significant new powers to councils

In a major transfer of power from Whitehall to town halls, councils will be freed from bureaucratic constraints with new freedoms and flexibilities to act in the best interests of their area.

Councillors will have to approve and be required to publish new chief executive pay rules at full Council that management will have to follow.

Councillors will no longer be prevented from voting on campaign issues; and there will be a new power to create directly elected mayors in 12 cities giving residents a say in a strong democratically elected leader;

Establishing powerful new rights for local people and communities

Powers for councils are accompanied by greater powers for local people to hold their local authorities to account.

Local people and communities' will have real power and a bigger say over their area through a new right to challenge to take over services; a new right to bid to buy local assets such as libraries, pubs and shops; the a new right to veto excessive council tax rises through a referendum. Bin tax laws repealed;

Radically reforming planning

Ministers believe the current planning system is too centralised and bureaucratic, too adversarial and remote from the communities it affects.

The Bill will restore democratic and local control over planning by replacing the Infrastructure Planning Commission with an efficient and democratically accountable system for major infrastructure.

The Bill will enable regional planning to be swept away and in its place neighbourhood plans will become the new building blocks of the planning system where communities have the power to grant planning permission if a local majority are in favour;

Making housing fairer and more democratic

The Bill will return decision-making powers on housing to local councils and communities through a new Community Right to Build giving communities the freedom they need in order to come together to build new homes & amenities in their towns & villages. Home Information Packs will be formally scrapped.

The Bill will put councils in charge of allocation and tenure of social housing, giving councils the flexibility to use their social housing stock to the maximum effect and reduce waiting lists.

It will be easier for social tenants to relocate though a new National Homeswap Scheme, and councils will be able to offer flexible solutions to people at risk of homelessness.

The Housing Revenue Account Subsidy System will be replaced with a more transparent system that serves local communities. Tenants will be able to scrutinise the services offered by their landlords and hold them to account. The Tenant Services Authority will be abolished but its vital economic regulation functions will be preserved.

Creating powerful incentives for economic growth

The Bill will give local government a stronger financial stake in the local economy, helping rebalance the economy, so it is more entrepreneurial and attracts local business by allowing local authorities to grant discretionary business rate discounts; making small business tax breaks easier take advantage of; giving affected businesses a greater say in rate supplements and cancelling certain backdated business rates including port taxes;

Decentralisation Minister Greg Clark added: "This Bill will provide the enduring legislative foundation for a new, decentralised Britain, where power is returned to the people to which it belongs. We believe that communities should have the freedom to manage their own affairs in their way, and be empowered, not suppressed, by Government.

"The Bill will enact new rights allowing local people to shape and influence the places where they live, revolutionising the planning process by passing power down to those who know best about their neighbourhoods."

Housing Minister Grant Shapps added: "With housebuilding at its lowest peacetime level since 1924, the time is right for radical shake up of the entire system.

"The Bill will end top-down targets - in their place communities with the vision and drive to build more homes will be given the freedom to achieve their ambitions, and this will be backed up with powerful cash incentives for councils that allow new development in their area.

"With five million people languishing on social housing waiting lists, social housing is ripe for reform. Councils will now be able to manage social housing in a way that genuinely meets the needs of local people, and will be able to offer fixed tenancies that give people the helping hand they need, for as long as they need it."

Communities minister, Andrew Stunell added: "The Localism Bill will pave the way for the long overdue push of powers out of Whitehall to councils and neighbourhoods across the country, and give local communities real control over housing and planning decisions.

"Local facilities have been closing down all over the country, leaving towns and villages without vital services.

"Small community groups that are willing to take over local assets often find that they lack the time and resources to get a plan together and compete with the might and muscle of big business and developers.

"The powerful new rights in the Bill will put real power in the hands of real people, empowering local communities and putting them at the heart of local decision making."

Cuts: disastrous consequences

Bob Reitemeier chief executive of The Children's Society, commented on the Bill: “Swingeing cuts to local authority budgets could have disastrous consequences for disadvantaged children and families if the services that they rely on are not adequately funded and safeguarded.

“The Children’s Society works with many children and families living in severe hardship and poverty and who are already at breaking point. Authorities are clearly going to be operating within incredibly challenging cash constraints.

"Front-line services, providing essential support for vulnerable children and families, must be protected, so that increasing numbers are not plunged below the poverty line.”

Shaking up risk

Paul Emery, head of Community and Social Organisations at Zurich Municipal, commented: “The Localism Bill claims to shake up the balance of power in local service delivery, but it also fundamentally shakes up the balance of risk.

“Local authorities and communities are being granted unprecedented levels of freedom over everything from tax tariffs and setting up their own banks, to housing targets and running key community assets like pubs and shops.

"This devolution whilst laudable in principle nonetheless presents several challenges in reality as new and often inexperienced groups and individuals are offered the opportunity to take on responsibility for local service delivery.

"Small states could mean big risks for those who do choose to take up that mantle – and it’s not clear that significant numbers will. Only a quarter of people we spoke to in our recent Tough Choices report agreed that individuals should have more responsibility for delivering local public services, whereas half believe it should remain the council’s job.

“What we do know is that it’s highly unlikely that more people will come forward to run services, set up their own schools or volunteer with a local charity if they think that there will be some personal risk to them.

"It is vital then that communities are armed with the right protection and guidance to take on more direct local service delivery. Far from getting in the way of a ‘Big Society’, insurance and effective risk management will in fact be vital in helping to deliver it – and make it a success.”

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