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Reducing the use of remand for defendants charged with crimes that would not normally attract a prison sentence.
Reducing the use of remand is expected to save up to 1,400 prison places and £40 million.
Tory backbenchers and Labour spokesmen served notice on Tuesday night that they would fight Clarke's plans to limit the use of remand in custody and tackle the explosion in the use of indeterminate sentences for public protection (IPPs).
Now the riots look as though they might have put paid to his next most important proposal: restricting the use of remand in custody for those offences that carry only a custodial sentence on conviction.
A "clear national framework for the use of out-of-court disposals, reforming the use of remand, and reducing the number of foreign national offenders" will also be brought in, Mr Clarke said.
A fresh revolt against his plans to limit the use of remand in custody would lose a further 1,300 saved places and mean he would have to find a further £40m from his justice budget.
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This is needed to reduce the use of custodial remand for men and women, many of whom will be found not guilty.
It will be important, too, to look at the high number of recalls for breach of license and any unnecessary use of custodial remand.
"It is very hard to see how a fourfold increase in the use of custodial remand can be squared with our commitment under the UN convention to use custody for children as a last resort," he said.
"Given that most female offending does not involve serious offences, the dramatic increase in the use of custodial remands and sentences for women is a significant concern".
Accordingly, we vacate the district court's judgment insofar as it adjudicated this issue without first considering whether plaintiffs have standing to challenge the preservation use of the HDL, and we remand for the district court to so determine.
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