Local government was described as "brilliant" and "efficient" and praised for taking "really difficult decisions" by the Prime Minister in Birmingham this afternoon. LGA delegates were appreciative but may have been a little sceptical after the perceived avalanche of criticism that has been heaped on councils these last twelve months. Still the PM continued talking up local government heralding the new era of "council power" which he saw as the conclusion of the government's radical agenda which was ending bureaucracy, abolishing quangos, "phasing out ring fencing" and "rooting out red tape".He highlighted the new authority that the General Power of Competence would grant local authorities to "run new services". He challenged councils to use Health and Wellbeing Boards to shape health policy and he praised Labour Islington public services for pooling £6million of funding to target resources at the most hard to reach families. He also accepted that this new relationship would require robust debate. He said that he would be "happy for you to tell us if we had got the wrong priorities", though he pointed out this worked both ways and singled out Chief Executive pay as an area where he thought the sector should show more restraint. This show of respect, listing of new powers and offer of a serious discussion about future direction paved the way for tough words on public sector pensions. Here he stressed the need for a settlement which was "fair" to taxpayers and workers. Judging by the conference 'clap-o-meter' Mr Cameron's words worked. But after the LGA event local leaders will look for proof of this appreciation of town hall efforts. Still, he also praised the new LGA Chairman, Sir Merrick Cockell, to whom it will fall to lead the task of making this relationship work.It is true that the localism agenda, expressed in the current Bill, but pioneered by the last Labour government and championed by Liberal Democrats is radical. But it is also true that there are still plenty of people in government who are reluctant to let go and are circumscribing the new powers. And the PM's challenge to us to "take people power to the next level" by devolving services to the community, has to be set against the reality of public indifference and declining budgets. It would also be interesting to see how the call to "tell us" if central government is wrong sits with the CLG's new Code of Conduct on publicity, perhaps, tell us if we are wrong, but only politely. Overall the Prime Minister probably made friends and influenced people in Birmingham. He is the first serving PM to address the conference and saying that councils are "doing a brilliant job in challenging circumstances" is a positive endorsement. So, if this is the start of a beautiful new relationship, that is a reason to be cheerful during a difficult week for public service.