'Local councils have had to deal with the consequences of long-term unemployment. New Labour will start to change that by getting 250,000 young people off benefit and into work,' she said.
'Each of those young people who moves into a job stops being a drain on public expenditure . . . and thereby helps to build the strong national economy we need. And we need Labour local government to help us build that strong economy.
'In fact every Labour local council will be expected to develop a partnership for regeneration.'
Ms Armstrong's remarks echoed those of leader Tony Blair, who claimed that Labour could pump more money into services without pushing up spending, by cutting unemployment and waste.
One of the first tasks for councils under Labour will be to ensure every adult is registered to vote, Ms Armstrong added.