Two of the three main local government trade unions have agreed to put pensions talks back on track, after communities secretary Eric Pickles issued a revised letter on a heads of agreement deal between town halls and staff.

On Tuesday afternoon the unions GMB, Unite and Unison withdrew from a provisional agreement in light of a letter drafted by the Department for Communities and Local Government. They claimed the text implied ministers were now seeking to impose limits on employers' contributions, similar to the unfunded health, teachers and civil servants' schemes, to the fully funded £150bn Local Government Pension Scheme (LGPS).