CCTV surveillance by councils could be curbed after the Government announced a review of its use for minor offences such as dog fouling and littering.

Home Secretary Jacqui Smith said the review would address concerns that powers were being used by councils “inappropriately or excessively”.

One of the measures under consideration is making elected councillors act as a watchdog for the use of certain methods.

Waltham Forest Council used covert cameras and surveillance equipment to spy on residents at least 30 times between July 2006 and 2008, but only two people were prosecuted as a result.

The powers were used 19 times to investigate people suspected of causing criminal damage, running pirate radio stations, drug-taking, dog fouling offences, graffitti and intimidation - and a further 10 times on suspicion of selling and manufacturing pirate DVDs.

Councils have to right to spy on residents under the Regulation of Investigatory Powers Act (RIPA), introduced in 2000, which was originally intended for counter-terrorism efforts before being expanded.