LGA conference - Parties compete to be best localists

Birmingham is being rocked by a phoney war, a war which will shape the future destiny of councils but, then again, still falls slightly flat.

It's the war for the banner of localism.

Battle is waged between Labour and the Tories who are fighting for the banner of 'the party of localism'. But somehow, not even at the Local Government Association conference, can the battle get properly going.

Labour talks the localist talk with citizen empowerment promised in the participatory budgeting theme which will loom large in Hazel Blears' speech this afternoon. But key details of Gordon Brown's proposed restructured regional government are yet to emerge. It remains unclear if what is being proposed will empower councils or interfere in their workings. And, of course, vast swathes of the Lyons report remain on the shelf.

The Conservatives launched their most powerful missile at their opponents this morning, in the form of party leader David Cameron's speech.

Mr Cameron talked much about empowering councils to tackle social breakdown and about giving them more freedom to identify children at risk of falling into trouble.

But his speech was equally noticeable for what it did not contain.

It remains unclear now many of Lord Heseltine's recommendations to revive cities will be implemented. And he said little about council finance, apart from a suggestion he would look at giving councils greater freedom to introduce bonds to pay for infrastructure projects.

Expect the skirmishes to continue until the general election. But local government can take heart in the very fact that the parties are competing to be seen as localist.

Added by Nick Golding live from conference