Ministers have predicted English local authorities - facing multi-billion pound redundancy bills and other cuts - will be put in the regeneration driving seat alongside local businesses and community groups as they are freed from top-down regeneration.
Visiting the Baytree Renewal Area in Manchester, local government minister Grant Shapps said he wanted to see an end to centrally imposed regeneration as it pits neighbour against neighbour.
He predicted the balance would move in the direction of communities themselves and tried to alleviate the multi-billion pound pain councils face by announcing a £5m fund to encourage councils and local enterprise partnerships to deliver housing and regeneration.
"We're shifting the balance in favour of communities themselves, untying the hands of councils and residents so they can make the key decisions over how they would like to improve their own neighbourhoods," said Mr Shapps.
Communities minister Andrew Stunnell said councils will be free to take the lead themselves.
"That's why we're devolving a wide range of powers to councils and their residents alike," he said.
The ministers said that nearly £20bn to be spent on projects like Crossrail, High Speed Rail 2 and Olympic legacy work would also help growth and regeneration.
Former BURA chief executive Jackie Sadek who is now chief executive of UK Regeneration said her organisation is delighted the Government has set out a clear and very simple framework for regeneration.
"In keeping with its drive on localism the Government is focusing on enabling measures and a few key strategic interventions on transport," she said.
"This offers all of us a challenge: taking this framework, with limited resources, and making things happen across the country."
