The document discusses reforms to the local government system in the UK, including the abolition of various regional bodies and the proposed Localism Bill. The bill aims to devolve more powers to local councils and communities but will also bring financial cuts and legal/financial reforms. It represents a continuation of longer-term bipartisan trends toward more local autonomy. The challenges for local authorities include integrating new legislation, understanding reforms to fiscal powers and financial instruments, developing social capital across communities, and rethinking roles under new structures like elected mayors. Local governments will need to learn new skills like managing risk-based investments, building workforce capacity, and leading reforms with depleted central government support.