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Control of police authorities - the local bodies which oversee each force - is to be handed to directly-elected members.
They will be able to hire and fire chief constables, dictate priorities and control parts of their funding.
Most Government targets will be dropped completely under reforms unveiled by Home Secretary Jacqui Smith.
Senior police figures warned yesterday there was a 'very real danger' that extremists - such as far-right activists or hardline Islamist groups - could whip up local opinion and win seats. This could raise community tensions and create massive problems for chief constables.
But ministers insisted that greater local control would return power to local communities. Home Office Minister Tony McNulty said: 'Democracy can be a risky business, I fully accept that, but we think it's worth the risk.'