In an article for the Guardian newspaper on the future of the Labour party, Mr Miliband insisted the government needed to be "more humble about our shortcomings".
"We should have devolved more power away from Whitehall and Westminster," he claims.
His comments have been widely interpreted as an attempt to position himself for a future leadership contest, with prime minister Gordon Brown coming under sustained pressure following Labour’s defeat in the Glasgow East by-election.
Mr Miliband served as local government minister between 2005 and 2006 during which time he coined the phrase "double devolution" for the simultaneous transfer of power from Whitehall to local government and from local government to communities.
An LGC poll in April 2007 found 74% of council chief executives and senior officers favoured Mr Miliband to succeed Tony Blair as prime minister.