CCTV surveillance by the council 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 “inappropriately or excessively”.

Councils have to right to spy on residents under the Regulation of Investigatory Powers Act (RIPA) 2000 - labelled by some as a "snooper's charter" - which was originally intended for counter-terrorism efforts before being expanded.

Councillor Afzal Akram, the council's cabinet member for community safety, said the council welcomed the review and looked forward to seeing any recommendations.

"I believe we use the Act responsibility and whether its flytipping or anything our residents are concerned about we make a judgement," he said.

"It's not used willy-nilly, there's a process in place."

One of the measures under consideration is local councillors acting as watchdogs..

"As long as there are appropriate checks and balances, if the government feels the portfolio holder for community safety or another councillor would act as a watchdog then I can't see that being a problem," Cllr Akram said.

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.

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

The council has refused to voluntarily release information about how many times the powers have been used in the last financial year.

Conservative group leader Councillor Matt Davis said: "I don’t think council should have these powers in the first place and they should be limited to agencies with proper investigatory skills, with ingrained and embedded checks and balances.

"Councils exist to provide services to local people, not to oppress them. The Act could be used to spy on whether people are putting items in their recycling boxes - it's a slippery slope.

"I could make an empirical case for saying we have the most oppressive government of the post-war era."

Isabella Sankey, director of policy at Liberty, said: "We welcome this review – which we have been calling for since RIPA was introduced – and hope it will prove to be a genuine consultation not a pre-judged tick box affair.

"There is no question that surveillance is a vital tool in the battle against serious crime and terrorism but reports that mothers are tailed by council officers policing school catchment zones have seriously undermined public trust and confidence.

"We hope that the Government is now ready to listen to these concerns and restrict broadly-drafted powers that have been widely used and abused.”