Angela Rayner will on Monday unveil plans for new mega-councils as Labour takes on ‘nimbys’ blocking planning applications.
A white paper on English devolution is expected to ask councils to submit plans for mergers.
The move comes just days after Keir Starmer pledged to force local authorities to build if they stood in the way of Labour’s plans for 1.5 million new homes in five years.
The proposals would see the creation of so-called “strategic authorities” across England, bringing councils together.
The government said the move would help “to avoid duplication and give our cities and regions a bigger voice”.
But it risks triggering a row, amid accusations it is removing a layer of local decision making over controversial planning applications, of the kind backed by so-called numbys (Not In My Back Yard).
Expected to be created are 20 to 30 new larger authorities, with the loss of around 150 councils in England.
The plans are also expected to see mayors of big cities and regions across England given control of rail services for the first time.
They will pave the way for metro mayors to have a role managing, planning and developing the rail network, the Observer reported, while also allowing contactless travel like that seen in London.
Transport secretary Heidi Alexander said a key aim of the policy was to promote growth.
“These new powers mark a historic shift in how our railways are run – giving local leaders the ability to shape services that truly meet the needs of their communities and drive local growth,” she said.
“By placing decision making closer to the people using these services, passengers’ experience of public transport will be improved, including through better timetabling and easier journeys door-to-door.”
Ms Rayner will promise the White Paper, which will set out devolution policy in greater detail, will be a “turning point.”
“When we finally see communities, people and places across England begin to take back control over the things that matter to them,” she is expected to tell mayors, local government and business leaders.
“When our proud towns and cities are once again given the powers they need to drive growth and raise living standards as part of our Plan for Change.
“It’s a plan for putting more money in people’s pockets, putting politics back in the service of working people and a plan for stability, investment and reform, not chaos, austerity and decline, that will deliver a decade of national renewal.
“Devolution will no longer be agreed at the whim of a minister in Whitehall, but embedded in the fabric of the country, becoming the default position of Government.”