Published today, the paper aims to make councils more accountable both to their constituents and to the organisations they work with. The Local Government Association and NAVCA have welcomed its proposals, and have agreed to work together to develop practical measures to bring the paper’s ideas to life.

For the third sector, the paper’s proposals include: embracing third sector organisations who want to deliver public services; increasing the involvement of service users in commissioning decisions; enabling community groups to take on management and ownership of local authority assets; and using three year grant programmes.

Lord Sandy Bruce-Lockhart, chair of the LGA, said: “The LGA proposed in the spring that more powers should be given to local residents and councillors to influence local services, and raise local problems and opportunities. We are therefore pleased that the government is proposing to do this by strengthening the role of local councillors.

“Putting the relationship between the councillor and residents on a formal footing will enshrine the ability of local people to help change the services they use for the better,” he added.

Neil Cleeveley, director of information and policy at NAVCA, said the white paper was excellent news for the sector. Chief executive Kevin Curley added: “We now look forward to working with the LGA to develop practical approaches to community engagement and empowerment. It is essential that as part of this, local VCS groups – with their vast experience of what matters most to local people – are enabled to play a full role in shaping public services.”

“This white paper could mark a historic change in the relationship between the third sector and local government,” said Stephen Bubb, chief executive of Acevo. “Government will not achieve doorstep devolution without close work with the third sector.

“It offers an opportunity to reform and recast funding and contracting which has often derailed good relationships,” Bubb added.

Stuart Etherington, chief executive of NCVO said: “We have long been talking about the need to transform local government and its relationship with the communities it serves.  Allowing people to become more involved, through devolved decision making represents a significant step towards reducing the local democratic deficit and engaging with people."

He added: “We are particularly pleased with the White Paper’s recognition of the voluntary and community sector’s role in bringing about a new kind of local government that truly meets local needs."