Waltham Forest council has received another warning from the government over the publication of its "Town Hall Pravda" and could be forced to scale back production by the end of next month.
Communities Secretary Eric Pickles has called for the authority to comply with guidelines on publicility and distribute Waltham Forest News only four times a year, rather than every two weeks.
Mr Pickles is a long-term critic of councils who regularly publish taxpayer-funded publicity sheets presented as newspapers, claiming they are propaganda tools which undermine the independent press.
Waltham Forest, Newham and Hackney Labour councils have been given two weeks to make further representations before a final decision is made.
In a written parliamentary statement, local government minister Kris Hopkins said: “Following this, the secretary of state will take his final decision in each case about whether or not to issue the council with a direction. Each decision will be taken on its own merits.”
This week Mr Pickles took action against Greenwich council, which was given until the end of the month to comply with guidelines.
The secretary of state has described the councils as behaving like Vladimir Putin in trying to force local newspapers out of business, referencing Pravdas associated with the communist era in the Soviet Union.
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