John Prescott has published proposals which would allow voters to force action by councils if services fall below certain standards.

Setting out his five year plan for regional regeneration, the deputy prime minister said ward councillors, acting as "local champions", will be given budgets and have more powers to make improvements.

"We want people to help to shape the local public services they receive and we want them to become more involved in the democratic life of their community," he said.

Tony Blair, speaking in the North West, said he wants more communities to become engaged in improving services.

"We've seen the success of a quiet revolution in places like Manchester which shows the success of transferring power to the people," the prime minister said.

The Liberal Democrats were not impressed.

Edward Davey, the party's spokesman, said: "Prescott’s plan has a massive hole at its heart and offers no commitment to transfer powers from his Whitehall empire to local government.

"The deputy prime minister is happy to devolve councils’ powers down to local neighbourhoods and communities. But there seems to be no hope of him devolving any of his own powers."