Everyone is well aware of how important community engagement is to devolution. As Toby Blume, chief executive of Urban Forum, says: ‘The deal is that central government devolves power to the town hall on condition that local people then have a say.' But dynamics between councils and community groups vary enormously across the country, and turning local empowerment from rhetoric into reality may not be easy. Mr Blume says: ‘The erosion of local government power has had an impact on local relationships which, in some cases, have become adversarial. ‘There are tensions between local authorities and community groups, community groups and community groups, and councillors and councillors. In some areas, relationships have broken down and that will take a long time to overcome. But in others, there is strong partnership working.' Mr Blume became chief executive of Urban Forum, an umbrella body for community and voluntary groups involved in regeneration, in 2004. He previously founded a charity called Groundswell, which helped homeless people set up and run community projects. He has witnessed growing political recognition of the third sector over the past 10 years, and believes secretary of state, Hazel Blears, has a genuine commitment to involving people in decision-making. The Local Government Bill creates a ‘framework' for authorities wishing to empower local communities, he says. But, in his view, it is, ‘a major piece of unfinished business'. It leaves questions about the balance between representative and participative democracy unresolved. Councils may be nervous about giving up control, but community empowerment can be a way to ‘enhance – not usurp – local democracy by involving a wider range of people in decision-making and encouraging greater diversity among councillors', according to Mr Blume. He says: ‘Councils need to change, be creative and find new ways to involve people in taking things forward collectively. In practical terms, start with the issues that matter to local people. If councils believe greater participation can lead to efficiency and social cohesion, they will find a way to achieve it.' This does not mean, ‘endless consultation with no feedback on why decisions were taken', which has been a problem in the past, he warns. Mr Blume has been involved in developing guidance on place-shaping, which should be launched by for consultation by the DCLG this autumn, and in operation by 2008. It is likely to replace sustainable communities strategy guidance and include instruction on Local Area Agreements. ‘It will be light touch, outcome-focused and strategic, and community engagement will be the golden thread running through it,' he says. More detail on what a new duty to involve local people in decision-making means in practical terms is also expected. Central government needs to put money where its mouth is. He is pleased that neighbourhoods will have control of ‘participatory budgets', or ‘community kitties' to tackle issues of local concern. ‘It has been shown to work in Port Alegre, Brazil,' he says. ‘We have used it in our own organisation. It can begin to restore local people's trust, bring them together to create a vision for place-shaping, and lead to more effective allocation of resources.' The community and voluntary sector also needs to recognise the opportunities the new framework creates. Third sector bodies are joining together to put forward views. Community Empowerment Networks (CENs) across the country are forming a joint network, the Community Sector Coalition is raising the sector's collective profile, and a National Strategic Partnership for Community Empowerment is improving co-ordination of community engagement activity and advising government. But for all his optimism, Mr Blume questions whether resources to ensure communities have the skills and capacity to take up engagement opportunities at grass-roots level are going to be available. CSR07 will be tight, the shift from funding to commissioning is likely to create problems for small community groups, and CENs are battling to keep their heads above water. He points out that the small grants programme represents only £50,000 per locality, and new endowment funds do not mean a great deal of extra resources for each individual area. w