Local government communications bosses have hit out at the Government's consultation on town hall advertising as being ‘heavily loaded' and against the spirit of localism.

The reaction follows the announcement on Monday by communities secretary Eric Pickles of a consultation entitled ‘protecting the press from unfair competition'.

Councils including Greenwich RLBC, Hackney LBC, Haringey LBC, Tower Hamlets LBC, Waltham Forest LBC and Luton BC, have been singled out for their failure to comply with the Coalition's revised code of recommended practice on local authority publicity by publishing their own periodicals.

To counter this, the consultation seeks views on drawing up new legislation to prevent local authorities publishing their own newspapers, hiring lobbyists and commissioning publicity with a political slant.

Communities secretary Eric Pickles said: ‘Some councils are undermining the free press and wasting taxpayers' money which should be spent carefully on the front line services that make a real difference to quality of life.

‘It should not, under any circumstances, be used to fund political propaganda and town hall Pravdas and yet a hardcore minority of councils continue to ignore the rules despite public concern,' Mr Pickles added.

In response, Cormac Smith, Chairman of LGcommunications said: ‘The title of this consultation, protecting the press from unfair competition, is heavily loaded.  It could be interpreted as the DCLG clearly setting out its own agenda ahead of any responses the exercise may elicit.' 

Mr Smith, who is head of communications at Basildon BC, said local authorities producing regular residents' publications that prove value for money will fear this ‘as a precursor to a law that will prevent them doing what is best for their local areas'. 

A Tower Hamlets LBC spokesman said a District Auditor had ruled the borough had  complied with the Government's code of recommended practice in its operation of the authority's ‘East End Life' publication.

The spokesman added the local newspaper had an audited circulation of less than 7,000 compared with East End Life's weekly distribution to 83,500 households and that the council newspaper offered the cheapest way of publicising statutory notices and housing options.