Government ministers have responded positively to Kingston's plans to gain greater financial independence and balance its books.

The borough is one of five lobbying Whitehall for devolved powers. Council leaders in the South London Partnership claim success could bring more jobs and homes to our part of the capital.

A report presented to councillors at Guildhall last night said: "The new ministerial team at the Department for Communities and Local Government have given confidence that devolution and fiscal reform are priorities for the new Government.

"Early indications are that the conditions are favourable for constructive and productive further discussions on proposals relating to Kingston.

"Kingston is well positioned to take advantage of the prevailing national agenda in favour of localism and devolution."

The South London Partnership includes Kingston, Croydon, Merton, Richmond and Sutton. The councils have already merged some back-room services to save cash.

Kingston Council will propose that the borough be allowed to keep a greater share of the tax it raises, thereby alleviating its reliance on government funding.

Last night's report also says that south London council may club together to create a "business rate pool" in the hope of retaining those receipts as well.

Figures released to the Surrey Comet last month suggest the move would cost the government only £12m a year.