The government should use its last session of parliament to free up planning rules in urban areas and remove the nutrient neutrality blockages currently holding up development, an influential think-tank has urged.

Right-leaning research body Policy Exchange, which was co-founded by the current housing secretary Michael Gove, said the government should use its remaining parliamentary time before the next general election to bring in a new Housing and Planning Bill designed to allow the government to “regain the initiative” on housing from Labour.

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