Central government would lose the right to push through major infrastructure projects such as airports and power stations under plans being trailed by the Conservatives.

The Infrastructure Planning Commission was one of the features of the Planning Bill and is expected to be fully operational by 2010, but David Cameron is ready to scrap the commission as part of a 'radical decentralisation' of power from Whitehall to local authorities.

In an article for the Guardian on Tuesday morning, Cameron declared himself a "committed localist", and said that he would grant local authorities a "general power of competence", allowing them to take action on any issue to improve their communities.

"That way, instead of endlessly looking up to Whitehall for permission, our councils will be looking to local people for direction,” the Conservative leader wrote.

Among other plans are to end the power of the Department for Communities and Local Government (CLG) to cap council tax, and end the 'forced amalgamation' of authorities.

The Conservatives have also pledged to reduce the power of regional development agencies and allow councils to take over responsibility for encouraging business and enterprise.

There would be referenda for directly elected mayors in the 12 largest English cities outside London, where Cameron said the system had been a "huge boost to democratic engagement".

Speaking on BBC Radio, shadow communities and local government secretary Caroline Spelman said the country had become increasingly centralised under Labour, claiming that regional agencies had acted as a "branch" of central government.

"This is the time to return trust to local democracy. Trusting in local people to make the right choices through the ballot box about the way they want to be governed," she said.

But local government minister John Healey said the opposition plans would lead to cuts in funding, arguing that cities could already choose to have a directly elected mayor.

"Labour has devolved power to councils and the public, reversing the centralisation of the Thatcher years," Healey said.

"The Tories say they back councils but are set to cut cash for local authorities, meaning increases to council tax bills or cuts to local services, at a time when people need real help the most."