The communities secretary has urged local authorities to create "the right environment" to ensure Britain becomes the number one place in the world for entrepreneurs and investors.
Speaking at the Local Government Summit 2012, Eric Pickles highlighted how partnerships between local authorities and the private sector will stimulate growth.
Pickles, addressing attendees at a Westminster Briefing seminar, set the scene for a new agenda for local government.
As part of this agenda, local authorities will raise their profile in order to create the long term growth needed to create jobs and control public spending.
Supporting the coalition's localism agenda, Pickles explained that the forthcoming year will see the responsibility for "growth to no longer be the sole duty of the Treasury but for local government in conjunction with the private sector".
Pickles said: "Trust will be given to local leaders to deliver, this means making tough decisions and putting cash where it can make the most difference"
"You cannot manufacture growth through nationally dictated plans. In the five years leading to 2008 the number of private sector jobs fell as a result of this", he continued.
"We are creating the conditions for strong local leadership. Councils and entrepreneurs will work together to be in the driving seat as never before. Partnerships now host two dozen enterprise zones with tax breaks on simple planning rules to attract new firms."
Pickles went on to highlight examples from the past 12 months of how localism has stimulated growth.
He said: "It has been little over a year since local enterprise branches started and they have made great progress.
"Coventry is working with local banks and other regions are working to draw in foreign investment.
"Manchester has unveiled detailed plans to create 20,000 new jobs through the creation of Airport City and the British automotive industry is on its way back- increasing exports by 20 per cent"
And, looking to the future of localism, Sir Merrick Cockell, chairman of the Local Government Association, explained that discussions are underway to formulate a green paper aimed at addressing how to overcome the barriers that local government faces.
"If we get this right, this way of doing business will be the shape of things to come. But if we fail it will return to the old system of strings and guidance and the gentle breathing of the overseer breathing down the hairs on the back of your neck"

Dods Parliamentary Communications Ltd