Council spending powers will be restored to 2010 levels over the next five years, if Labour wins the General Election.
In their manifesto, Labour said they would reverse the ‘decade of austerity’ for local government and would move to bring services back in-house within the next Parliament.
There are also plans to introduce a ‘rural-proofing’ process to ensure all laws and policies consider the impact on rural communities.
The manifesto states: ‘Where local areas experience a sharp rise in demand for services, we will make council funding more reactive, and will work with councils to establish such a fund to meet changing circumstances.’
Labour also said they will review the option of a land value tax on commercial landlords as an alternative to business rates and set up a Business Development Agency to provide free support and advice on how to launch a business.
The manifesto also outlines plans to protect vulnerable children: ‘Labour will launch a wholesale review of the care system, including kinship care, considering national standards such as a central register of foster parents and regulation of semi-supported housing, to ensure we meet the needs of every child.
‘We will rebuild early intervention services and replace the Troubled Families programme with a Stronger Families programme, refocused on long-term support to reduce the risk of children going into care.’
Labour has also pledged to create a 'housing revolution' with the biggest council house building programme since the Second World War.
Public service workers will all get a 5% pay rise in April under a Labour Government with council workers earning more than £1,200 on average.