In advance of the environment secretary's statement on local government finance on Thursday, the Labour party hierarchy is said to be already issuing warnings to Labour groups not to take the bait.
The Post says that if the details are agreed at a pre-budget cabinet meeting today, John Gummer will indicate that he does not intend to impose capping this year, whilst retaining reserve power to deal only with 'wildly excessive' rises.
Labour MP for Birmingham Perry Barr, Jeff Rooker, warned councillors to be wary of any new freedom, reports the Post.
'There is a lot of unmet pent-up need in the system. But we must use out brains and only embark on projects which can be wholly justified to the electorate.'