I'm delighted to be here as the new Communities Secretary. I feel in some ways like a round peg in a round hole. So much of my formative political experience was in local government and as a community activist. I was a councillor for eight years and a council officer for 18 years.

Not just my CV, but also my whole political approach, fashioned on the streets and estates of Salford, is anchored in localism and devolution.

I believe that the best experts, advocates and leaders for local communities are local communities themselves. There isn’t a single service or development in Britain which hasn’t been improved by actively involving local people, and there’s more common sense on the average street or estate than in all of the think tanks and seminars put together. Devolving power from Whitehall to the Town Hall, and from the town hall to local communities, is not just the right thing to do, it's the most effective way to build places where people are proud to live, work and raise their family. It's the surest way to make public services meet people's needs. And it’s the only way we can meet some of today’s biggest challenges - from climate change, to community cohesion.

We’ve been debating localism for many years now. I don’t know about you, but I’m sick and tired of talking about it. I want us to get on with it. Time to do, not time to talk. And the Prime Minister has made clear that these principles of daily democracy are at the heart of the new Government - and that we need nothing less than a “reinvention of the way we govern”. So today I want to set out my views how we can put flesh on the bones of the Local Government White Paper. How we can turn rhetoric into reality. And how we can cement the role of councils and councillors as local leaders. Not bypassed in the rush to localism, but heading up the charge.

First, it's worth taking a moment to celebrate the local government achievements that have got us where are today. The White Paper is the first great step forward for the next stage of local devolution in this country. It will give a strong foundation to build on as we look to go further in years to come. It is the expression of a new and more mature relationship between central and local government. That relationship is founded on our belief that renewed and revitalised local government is not just up to the job, but leading the way in many areas of public service reform. This year’s outstanding results from the Audit Commission vindicate that belief one hundred per cent. For the first time, no councils got zero stars.
Nearly four in five were rated in the top two categories. And these improvements have also helped councils realise some £3bn of efficiency gains, meaning much better value for the taxpayer.

I also want to recognise the central role you play in helping us face up to some of the biggest long-term challenges we face today.

Take climate change. An issue that's vital to us all, and future generations. As Hilary (Benn) has said, tackling climate change must mean action at all levels. Internationally, we’re starting to make progress towards a new approach. At an individual level, people are keener than ever to do their bit. But getting it right must also mean harnessing that sense of solidarity we feel and acting together as neighbourhoods and communities. And I salute the councils like Kirklees and Woking who are showing what can be done to help whole areas to cut their carbon footprint.

Or take community cohesion - how we celebrate the values we all share and that help us draw strength from our diversity. With unprecedented social and economic change, it’s never been more important - and it’s a personal priority for me. But as the impacts of change vary so much from place to place, it is local government that is best placed to find solutions that work. Darra Singh’s Commission on Cohesion and Integration highlighted the excellent work that many councils are already doing. I’d like to thank Darra and all the Commissioners for their work, and the Government will be responding to their recommendations in autumn.

And as local government continues to improve its performance across so many areas, I think it's also right to recognise the important role that the LGA plays. Not just as an advocate and representative. But as a body that is taking responsibility for keeping local government in the vanguard of public sector reform.
I also recognise what you've done about raising standards across the sector. When there's a challenge somewhere in the local government family, you know that the best solutions often come from the sector itself. And you take responsibility for it - finding solutions, bringing local services back up to scratch. It's an approach that shows the great strength and confidence in local government today.

And what do I want to achieve in this new role?

I want to make swift and tangible progress on the measure that will strengthen our daily democracy. That will put more power in the hands of locally elected leaders. And that will give communities greater control over the places they live and the services they need. There is a lot more hard work to do. The vast majority of the White Paper proposals need to be in place by spring 2008. That’s just a matter of months away. So there’s no time to lose in getting ready. Neither for you in local government, nor for us in Whitehall.

I want to highlight just a few of the specific areas that I want to focus on in the next few months.

I recognise Sir Simon’s call for greater powers for local councils. And I think he’s right when he says local leaders need be able to make more decisions about the things that people really care about.
I believe we should be ambitious about the future. I welcome the draft Transport Bill that will give local authorities greater powers to work with providers to make sure bus services genuinely reflect people’s needs.

I am looking forward to the Sub-National Review, that - among other things - will set out what more can be done to empower cities and enable councils to work together better to drive regeneration and economic development. I think our cities are the great British success story of the past decade. I think of Birmingham, Leeds, Manchester, Glasgow, Cardiff, (and the others I haven’t mentioned!) and the vibrancy and excitement that they embody. I think of Salford, whose skyline 20 years ago was dominated by wrecking balls, and is now filled with cranes, building a new city. The BBC relocating to Salford Quays. And I know that it is local government which has been the architect for the revival of our great cities.

And in the longer term it’s clear to me we need to be thinking about giving local people more control over their NHS and their police force. It’s early days, but I will be discussing with my ministerial colleagues how we make this happen.

But we shouldn’t discount or underestimate the key measures in the White Paper that give local leaders new discretion - everything from setting byelaws, to creating parishes.

Or take Local Area Agreements, the first thing I want to concentrate on today. Thanks to your hard work, every local authority now has their own Local Area Agreement. These Agreements are a way of making sure that national priorities are delivered locally. But more than that, they are the way local authorities and their partners agree how to deliver their vision for the place they serve.

In some respects, the agreements we have so far are just a first step. We’ve listened to your concerns, and the new agreements that start coming in next year will represent the next stage of devolution. I've always said that targets have their uses in delivering public services. But they are a means to an end, not the be-all and end-all. And in many areas I don’t think I should be deciding what you should be trying to achieve, or how you measure it. Lots of those decisions should rightly be up to you. So the new agreements must give room for you and your partners to focus on the issues you see as being most important. The number of indicators will be slashed from over 1,000 to around 200. The non-statutory targets for each area will be boiled down to around 35. And local authorities will have unprecedented discretion to direct funding to meet those targets.

What’s more, the way local area agreements bring authorities and partners together will help make things clearer. A few years ago, for example, Kent and its partners counted about 9 different measures of teenage pregnancy that they were using between them. That can’t be common sense. The best agreements will address economic priorities, to ensure places have a vibrant, sustainable future. And they will get to grips with the issues that people feel very strongly about - whether it's the local environment, crime or bringing people from different backgrounds together. This is about letting the majority of councils who are doing a good job get on with it. And crucially it is about reaffirming the role of local authorities as those who “hold the ring” of local democratic accountability - listening to the community, and working with local partners to meet their needs.

I believe that the biggest improvements in public services are driven not by the oversight of central government, but by local people. By communities having a chance to say what they want. And Local Area Agreements give councils the opportunity to put themselves at the centre of that process. To draw on the views and expertise of local people. To be not overwhelmed, but strengthened by their participation. Many of you are showing what can be done- seeing empowering communities as an opportunity, not a threat.

And I think the same kind of approach could pay real dividends when it comes to the second thing I want to talk about - community control of public assets. I've long been an advocate of transferring assets to communities. Not just the odds and ends, but the real jewels in the crown. Barry Quirk's review was a brilliant analysis of the benefits it could bring. Whether it's a school building, pub or market, community control can bring people together and give them a real sense of pride. Sometimes it can even help them learn new skills, improve the environment, or reinvigorate the local economy. Asset transfer creates active citizens. It builds, not threatens, local democracy.

I'm really pleased at the reaction of local government and the community sector to Barry’s proposals. Many have recognised asset transfer as a way of strengthening their community and jumped at the chance to be part of the Demonstration programme. 54 partnerships have expressed an interest. They come from every region, every type of area, and the whole range of political control. Today I’m pleased to announce the 20 places where work will be going forward. But I hope very much that the areas who are not on the programme will find other ways to take things forward themselves.

And I welcome the way that local authorities are interest in experimenting with other, new and innovative ways to involve local people. Take participatory budgeting - the third area I want to talk about. Participatory budgeting is a very a dry name. Lots of people have made suggestions about what we should call it instead - “people’s purse”, “community kitty”…But whatever you call it, it's an exciting idea. It was pioneered in the slums of Brazil, giving some of the poorest, most powerless and dispossessed people on the planet a stake in their future.

And it works.

Giving people direct and transparent choice about how funds are allocated in their local area not only makes sure their priorities are being met. It's a way of making them feel more able to say “this is my street, my estate, and I'm proud of it.” Devolution right to the doorstep. Look at the results of experiments in Sunderland, Newcastle, Salford and Bradford. In these places communities have learnt more about each other. More about how their council works. And they’ve developed a greater sense of pride and ownership in their area. So the time is ripe to take things a step further. That’s why I’m very pleased that, with my department’s encouragement, ten pilot projects are being undertaken around the country that will give even more communities a direct say in budgets. I hope this will inspire many more of you to explore what’s possible, and to think about getting people involved in the decisions that make a big difference to their day-to-day lives.

Fourth, and finally, underpinning all these reforms, and crucial to the success of the new landscape - are councillors. Locally accountable. Elected by the people. The backbone of local democracy. But from my years on Salford Council I know that it's a hard job. A huge commitment. Long hours. And far more people bending your ear than saying thank you.

It's sad that there is so much cynicism about local politics. In the fifties, people used to say that it was a way of serving the community. Today, people think it's about serving yourself. Political engagement is nothing to be ashamed of. On the contrary, it's something to shout about. That’s why the Councillors Commission is so important. I welcome the way Dame Jane Roberts and her team have gone out into the country, meeting people from all different backgrounds and political affiliations. I'm very much looking forward to its recommendations on how we can encourage more candidates to consider this vital role.
How we can support them as they develop their skills, chart their careers, and combine their responsibilities with family life. And how we can make sure we have the right people to make a difference for their communities. When I think of some of the councillors I meet - young Muslim women like Maryam Khan on Manchester City Council - I know that there are brilliant people out there, willing to serve as councillors if only we made it a more attractive prospect.

These, then, are my principles and my priorities.

A new localism that puts local government at the centre of the picture. Listening to local people. Working with partners to deliver what they need. Showing responsibility and leadership for the places they serve.
It’s a vital part of achieving what the Prime Minister has called a “[change in] the way we are governed…to do more to bring government closer to the people.” His proposals on constitutional reform represent a significant shift in the way we look at the relationship between government and communities. I encourage you to read them and think about how they can make a difference for you and the people you represent.
We've started down the road towards a new settlement, but there is a long way to go.

I believe we can go further and faster working together. So I pledge that I will listen to you. I will learn from you. And in the months to come I want to take the opportunity to get out there are see what you are doing. In turn, my door will be open.

We've got a real opportunity today. Let's seize it.