• A new requirement that councils undertake an economic assessment of their area to ensure they understand the challenges facing local residents.

• New powers to create 'Economic Prosperity Boards' to promote economic development and regeneration within the overall framework of a regional strategy.

• The creation of Multi Area Agreements with statutory duties, which will allow local authorities to work together on economic development.

• New powers for councils to set up mutual insurance companies to help them make efficiency savings.

• A new duty on councils to promote local democracy and ensure all sections of their community understand how the council and other public bodies work, who makes the decisions and how they can get involved.

• A requirement for councils to respond to local petitions on the issues that are of most importance to their local communities.

• Making the Boundary Committee for England an independent body and separate from the Electoral Commission.

Local Government Minister Rosie Winterton said:

"The global downturn has affected different areas of the country in different ways, creating challenges that require local solutions.

"Now that this Bill has been given Royal Assent, Regional Development Agencies and councils will be in the driving seat for delivering strong local economies and regeneration.  They now have the tools to set their areas on the path to economic recovery.

"The Act strengthens the democratic role of councils as local leaders in every region, giving them the power to work with local people and their regional partners to increase prosperity and tackle social deprivation and inequality."