The government has amended the draft local government bill in response to criticisms made during recent consultation
Several provisions for the secretary of state to introduce regulations after the act is in force will be dropped and in some cases proposed future regulations will be included in their place.

The proposed merger of the revenue support grant for local authorities with redistributed national non-domestic rates has been vetoed.

Local government minister Nick Raynsford said: "The changes to the draft bill reflect the areas where we accept there has been reasoned and robust argumentation in favour of amendment.

"We do not, however, accept all of the comments received in consultation, nor all of the select committee's recommendations, and we strongly reject the view that the bill aims to create more power in central government."

The bill gives the best performing councils freedom to borrow money, which went down well with respondents to the consultation paper.