It would appear that getting a kicking from the Tories has had another knock-on effect for the Labour party. They are putting forward proposal to effectively "gerrymander" the local election boundaries in order to marginalise Tory support and make it easier for them to bounce back. In the interim report commissioned by Brown and Prescott, Sir Michael Lyons says that council's political boundaries should be adjusted to create 'closely contested elections'.
Shadow Local Government Secretary Caroline Spelman is quoted on the Conservative Party website saying "The local elections saw voters punish the Labour Party for its inefficient councils and incompetent government. It would appear that if Labour can't win elections, they'll fiddle the boundaries instead. Their postal voting reforms have already compromised Britain's traditional reputation for free and fair elections. It now seems that Tony Blair and Gordon Brown will stop at nothing to hang on to power."
Thanks to outsider for pointing this one out to me