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The prime minister and his deputy have written to cabinet colleagues, reminding ministers that reducing the deficit is the "most urgent issue facing Britain".
David Cameron and Nick Clegg thanked their colleagues for their commitment to the coalition government during an "intense and at times tough" first 12 weeks.
The pair said that as government departments make "vital negotiations" with the Treasury, every decision on spending must ensure more power is handed to local people.
The coalition government has pledged to cut most of the departmental budgets by at least 25 per cent as part of a spending review to tackle the deficit, due in October.
Cameron and Clegg emphasised that the new administration "unlike previous governments, would govern for the long term".
The duo's letter says the government's purpose can be summed up in one sentence: "To put power in the hands of communities and individuals, and to equip Britain for long term success."
They said there would be "two major shifts" in political life as this was delivered.
The first was a "radical redistribution of power from government to communities and people, to reverse decades of over-centralisation".
The pair wrote: "The importance of this approach cannot be overstated. It underpins our attitude to public service reform. It animates our plans for genuine localism.
"It explains our focus on government transparency. If we are true to this purpose then the people of this country will feel a new sense of power and responsibility in their daily lives."
They continued: "The second fundamental change is that this government, unlike previous governments, will govern for the long term.
The letter was sent as the prime minister prepared to travel to the West Midlands for a Cameron Direct question and answer event and to participate in a phone-in on BBC WM.
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