New deputy PM, Nick Clegg has announced that he wants to roll back the "big brother state".
Clegg has promised that local councils will be given the power to raise local taxes.
The news comes after it emerged that the Lib Dems are trying to hang on to around £1.75m a year of taxpayers' money intended only for opposition parties.
Clegg made the announcement at the same time as stating that he planned to abolish Labour's surveillance laws by making what he claimed, were the most radical changes to the political system since 1832.
The move to make this announcement puts Clegg at odds with the coalition agreement published today, which will confirm Tory plans for a two-year council tax freeze.
Clegg is instead proposing the introduction of local tax laws to be introduced at the end of this two year period.
Speaking on the topic earlier today, the Deputy Prime Minister said: 'What I'm establishing today is the principal of more fiscal devolution, greater autonomy for local communities to raise money and indeed how to spend money. There are 1,001 ways you can do that."
Although both the Tories and Lib Dems want to increase the power of local councils to decide how money is spent, the Tories have spoken up today to reassure the public that this will not include the power to increase taxes.
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