An estimated 70% of council income will now be raised locally compared to 56% under the centrally-distributed "begging-bowl" Formula Grant system, according to the Communities and Local Government Department (DCLG).
From April 2013, councils can channel this greater local control into encouraging local jobs and local firms via a new business rate retention incentive that rewards them for growth. It could potentially add £10 billion to the economy by 2020.
The DCLG also published 50 examples of where it believed councils could save money, ranging from opening a coffee shop in libraries to scrapping the post of chief executive.
Councils must keep doing their bit to tackle the inherited budget deficit because they account for a quarter of all public spending and still get through over £114 billion of taxpayers' money each year.
More top news
Immortalised in the film Zulu, the Battle of Rorke's Drift is an iconic episode of British military history.
Fans and friends of Joe Cocker paid tribute to the Sheffield-born star's long career and his passionate, distinctive voice.
It's going to be turning colder for everyone over the next few days with a band of rain moving southwards across the UK.