Councils are to have their powers to snoop on the public severely curtailed. Jacqui Smith, the Home Secretary, will signal government plans today to reverse the expansion of the surveillance society amid growing alarm at the extent of official spying.

Councils have used legislation intended to tackle terrorism and serious crime to deal with minor offences such as dog fouling and littering. Even families anxious to secure places at successful state schools have come under scrutiny from zealous officials.

The powers have been used almost 50,000 times by public authorities such as local councils and the health service since 2002. The figure does not include surveillance by the police.

Under the government proposals thousands of council workers will lose the right to use the Regulation of Investigatory Powers Act 2000. Only chief executives and senior officials will be able to sanction use of the Act to eavesdrop on conversations, track vehicles and secretly film people — and only then for more serious offences such as benefits fraud and illegal trading.

Consumer groups will welcome the changes, but some privacy campaigners will say that they do not go far enough. Simon Davies, of Privacy International, said: “Given the farcical and overzealous use of these powers by local authorities it is entirely unacceptable that even chief executives should be given sign-off powers. Authorisation should be placed where it always belonged: with the police.”

Chris Grayling, the Shadow Home Secretary, said that surveillance powers should be used only to tackle terrorism and serious crime.

Chris Huhne, the Liberal Democrat home affairs spokesman, said: “This consultation is a tacit admission by the Government that its surveillance society has got out of hand. For too long, powers we were told would be used to fight terrorism and organised crime have been used to spy on people’s kids, pets and bins. Surveillance powers should only be used to investigate serious crimes and must require a magistrate’s warrant.”

The consultation paper also suggests giving local councillors the right to monitor the way in which officials are using the powers. The Home Office said that this could involve chief executives and senior officials needing the approval of local councillors before they allow surveillance operations to begin.

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