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[Holding Reply: Monday 1 July 2013]<\/em><\/p>

The Government is taking considerable steps to devolve power and freedom to local government and Local Enterprise Partnerships.<\/p>

Through the Localism Act, councils now have the general power of competence that enables them to do anything that an individual might do, apart from that which is specifically prohibited. In addition we have radically reformed the local government finance system putting levers and incentives in the hands of local authorities, for instance:<\/p>

· The removal of ring-fencing from local government grants has given councils the freedom and flexibility over the money they receive and allows them to work with their residents to decide how best to make their spending decisions to fit their local priority needs.<\/p>

· rewarded places that deliver growth, through the New Homes Bonus and Business Rate Retention.<\/p>

· Local authorities now directly retain 50% of business rates locally which amounts to nearly £11 billion, instead of returning it to Whitehall.<\/p>

· We established five pilot Rural Growth Networks aimed at tackling the barriers to economic growth in rural areas, such as a shortage of work premises, slow internet connectivity and fragmented business networks. These pilots expect to create up to 3,000 new jobs and support up to 700 new businesses, offering a local approach to local problems. We will share the lessons they learn with other Local Enterprise Partnerships and Local Authorities to help them promote growth in other rural areas.<\/p>

We have also given councils the ability to borrow against their Housing Revenue Account.<\/p>

Through the city deals programme we have devolved powers and responsibilities to 26 cities. For example we have:<\/p>

\u2022provided levers to deliver the skills and jobs that local businesses and people need;<\/p>

\u2022created joint investment programmes; and<\/p>

\u2022 devolved greater financial powers and incentives to invest in growth to all cities.<\/p>

As we made clear in our response to Lord Heseltine's review of Growth, we intend to go further. We have committed to negotiating Growth Deals with every Local Enterprise Partnership through which we will allocate the Local Growth Fund and negotiate broader powers, freedoms and flexibilities where a strong case for decentralisation can be made. The Local Growth Fund brings together funding from skills, housing and transport and we have committed £2 billion in 2015/16 and it will continue to be at least £2 billion a year up to 2021. The Local Growth Fund includes:<\/p>

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