Ministers have launched a debate on how local government should look in ten years' time.
The debate will look at how local government should react to changing needs, expectations and lifestyles over the next decade.
A series of papers will be released setting out areas for discussion. Two papers are published this week - one setting out the main themes of the debate and the other on local area agreements.
The aim is to build a shared vision of the role of local government over the next few months in partnership.
Launching the debate, Deputy Prime Minister John Prescott said local government must have the capacity to make a real difference in communities.
Key themes to be discussed include:
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Local leadership
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Citizen engagement and participation
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Service delivery and the performance framework
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The relationship between central, regional and local government
Mr Prescott said some of the issues lead to some difficult choices. "But now is the right time to talk about them so we can map out a way forward together that will deliver services people value and the places they want to live in," he said.
"I hope all stakeholders will take this opportunity to join in the debate and come forward with ideas."
A series of meetings and events will take place with other government departments, councils and stakeholders. A strategy will be published next year setting out the shared vision for the future of local government.