Proposals to offer criminals a 50 per cent sentence reduction in their sentence for an early guilty plea may now be ditched or scaled back in a bid to re-establish the Conservative's law and order credentials.
There is also a question over Mr Clarke's planned curbs on the power of judges to give indefinite sentences, the Times reported.
Mr Clarke's proposals have been unpopular with Conservative colleagues and viewed as a vote loser.
The cimbdown is an embarrassment for the Governmnet as the plans initially enjoyed Cabinet approval and were a centrepiece of its criminal justice policy.
Mr Clarke will now have to come up with £100m of savings elsewhere from his budget but has already begun to make record cuts in legal aid as part of large cuts to Ministry of Justice spending,
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