“The following costs are not Eligible Expenditure:- Payments that support activity intended to influence or attempt to influence Parliament, Government or political parties, or attempting to influence the awarding or renewal of contracts and grants, or attempting to influence legislative or regulatory action”
In short, this means that local authorities cannot spend money lobbying the government. Pickles says:
"We hope this can and will be rolled out more widely across the public sector."
Amen to that.
Read more—including the full text of his statement—at the IEA lifestyle blog.