The proposal, part of a consultation called Freedom to Lead, is designed to make inspections more efficient.
The LGA also wants to drastically scale back the national indicator set, devolve more cash for local services to councils and introduce new targets for authorities, negotiated with local people, not central government.
It claims that local councils are better placed to run aspects of health and policing services, since they are in touch with local needs.
The consultation cites the government's Total Place pilot scheme, currently running in 13 local authorities, as evidence that local devolution works.
Results from the pilots, which seek to improve the efficiency of public bodies, show that around £7,000 is spent providing services such as health and education for each person every year. But locally elected politicians only control £350 of that sum.
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