updated, 10:31 pm - ok, not a victory, yet. The Budgie dug further and "being reviewed" seems to mean, in Budgie's words: "Also, if "extreme forms of political correctness" are not acceptable, the Council position seems to be that "MILD forms of political correctness" are acceptable."
An ad-hoc Coalition of the Swining have triumphed! "Race equality rules are being reviewed at Dudley Council after workers were told to remove toy pigs from desks because they offended a Muslim staff member." Apparently somebody finally noticed that this was, quote, "...political correctness gone barmy."
(w/t to Dhimmi Watch via the Lost Budgie, paying immediate dividends from his new perch in the Pantheon.)