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Hazel Blears says the credit crunch offers an opportunity for councils to exploit the localist agenda. Hazel Blears says life after the Lyons report has changed. Local authorities face new challenges which the y could use to thier advantage Towns are best when they show their individuality. No-one wants to live in a place where big-name coffee shops, fast food chains and mini-markets have buried any trace of character. People prefer places with their own distinctive verve and vision, where buildings attest to a unique local history, and where plans for the future are about shaping a niche in the new economy. There is nothing new in this idea. Look at the leaders of the golden civic age. In the 19th century, towns and cities vied with one another to have the best, the most original of everything. Last month, I was in Leeds, where the town hall had just celebrated its 150th birthday. A legacy of the pursuit of excellence, it remains a symbol of local pride. Summing up these ideas about local distinctiveness, Sir Michael Lyons introduced us to the idea of ‘place-shaping'. Although a curious bit of jargon, its principles have long been at the heart of government thinking. They permeate the 2006 White Paper. They inform the new performance framework – from the reduced indicator set, to the £5.6bn moved into mainstream grants – giving councils more space to prioritise, innovate, and lead. But we all know that the world has changed since the Lyons' report was published. After an unprecedented period of growth, the economy faces rougher times. And policy-makers today face a choice. Do they make local autonomy a casualty of the credit crunch? Or do they make it part of the solution? I believe the choice is clear. The credit crunch is global in its origins and its effects. That's why, at a national level, we are taking decisive measures for long-term stability, working closely with partners in the US and Europe. But what local people and civic leaders do is also highly significant. Difficult times don't discredit the new localism. They make the case for it stronger still. First, more than ever, residents want to get their money's worth from public services. Councils are ideally placed to innovate. From sharing services to rethinking the way they are delivered, many are showing that it is possible to save money and deliver – with the equivalent of £3.45bn saved over the past three years. As we look to the future, a growing body of evidence – including the experience of individual budgets for social care – shows that involving and consulting people can give better value for money. Second, in tough times, people look to government for help and security. As they are close to the people they serve, councils can make a connection. This means more than making sure that people get the housing benefit they are entitled to, or that they can use their library to the full. It means setting a vision about the community's future, giving people a sense of belonging and purpose. Third, the Work Foundation's Ideopolis report underlined that distinctive visions help make towns successful, encouraging investment and growth. Different places have pursued different techniques. Brighton and Watford have thought long and hard about how they can complement London and the rest of the South East economy. Salford has forged an icon of local pride in the shape of the Lowry Centre. As we weather tough times, and look ahead to when the economy picks up again – which it will – those places which understand their own role in a global economy and can play to their strengths will fare the best. So, when I speak to local authority chief executives this week, I will come with a promise and a challenge. A promise that, as they exhaust the limits of the discretion offered by the current performance framework, I will work with them to give them the room to excel. And a challenge – to be bold in championing new ways of delivering services, to find fresh ways of connecting with the people they serve, and to make their economic plans for the long term, taking pride in what makes their area unique. The coming months will be challenging for governments everywhere, and at all levels. No-one should be under any illusions that they will be comfortable. But I'm confident that local authorities have the skills, confidence and maturity to rise to the ccasion. Hazel Blears is secretary of state for communities and local government.

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WHITEHALL

Shaping up amid the turmoil

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