Rt Hon Hazel Blears MP, Secretary of State for Communities and Local Government

Giving more power to town halls and local people isn't just the right thing to do. It's the best way to make sure public services meet local needs, and the only way to overcome some of the biggest challenges we face as a society, from climate change to childhood obesity. That's why the Green Paper 'The Governance of Britain' placed a vibrant, reformed local democracy at the heart of proposals for 'a new kind of politics'.

This is a huge opportunity for local government – but also a challenge; if missed, the localist moment will not come again. So where do we stand today? And where next?

As councils improve year on year and achieve ever higher standards, Whitehall is stepping back and giving them the space to deliver. New Local Area Agreements mean less red tape and more discretion to direct funding towards local priorities, whether that is tackling truancy, cleaning the streets or reducing antisocial behaviour.

In central government we're working hard to make sure that introducing the new agreements isn't about ticking boxes – it's about changing minds. Agreements are the only place for negotiating local priorities. There can be no extra Whitehall targets sneaked in through the back door. Guidance is supporting local authorities as they discuss with police, schools and hospitals what they want those priorities to be.

But increasingly, and rightly, we are seeing local authorities looking not up to the centre for direction and legitimacy, but outwards to their communities. Dedicated councillors know that participative and representative democracy are not in conflict, but go hand-in-hand. Consulting is just the first step. I look forward to many more areas getting people directly involved in decision-making through participatory budgeting, petitions and asset transfer.

Finally, many local authorities are thinking creatively about how to work together across boundaries. This concerted approach is sometimes the best way to tackle worklessness, boost economic performance, or join up public transport in a way that meets local needs. The first multi-area agreements that are taking shape offer a glimpse of an approach that could bring opportunity to long deprived areas.

The spotlight is on local government as never before, but I am confident it can make the most of the opportunity, bring about a big difference to communities' everyday lives, and show – to paraphrase Robert Dale - "what a great place might do for its people". I'm looking forward to it.