Communities and local government secretary Hazel Blears' plans to devolve funds to the public have caused chaos at the LGA annual conference in Birmingham this week.
Despite calling for more public involvement and devolution of powers to communities in it's flagship publication People and Places, the Association failed to come up with a coherent reaction to the policy.
Association chairman Sir Simon Milton dismissed the plans claiming research showed the public just wanted councillors to get on with their job and didn't want to be involved.
Director of policy at the Local Government Information Unit, Ed Cox, welcomed the government's new policy. He said: 'I beleieve that community kitties - or participatory budgets - are good for communities and good for councillovrs.
'My experience in Brazil suggests that devolving local spending decisions engages greater numbers in the community but puts the local councillor centre stage.
'There is strong evidence from cities like Porto Alegre in Brazil that in key service areas it leads to efficiencies and service improvement.'
A spokesman for the LGA told LocalGov the confusion was 'part and parcel' of working with a cross-party organisation.
He criticised the government for telling the media about its new policy before Ms Blears' speech to announce it to the LGA annual conference later today.
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