The so-called "single offer" will enable local authorities with a strong track record to negotiate radical new freedoms with government. Some councils will be completely freed from ringfencing, other than the core schools grant and counter terrorism cash.
Single offer councils will be expected to meet higher savings targets than other authorities annually, but they will be able to retain a share of these savings.
Councils that are particularly good at delivering services in one area, but may be weaker in others, will have access to a new "innovative policy offer". This will allow authorities to negotiate devolved responsibility and funding in areas such as health or children's services.
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