Ministers have insisted that environmental obligations will remain when a revised planning policy on climate change for English councils is published towards the end of the year.

Responding to reports about plans to drop the "Merton Rule", the government has insisted that the policy will remain in place and planning authorities and their network partners will be required to ensure that environmental measures are in place before approving applications, potentially increasing the number of planning jobs available.

A statement from Communities and Local Government reads: "Contrary to what the Guardian claims, councils will be required to deliver more ambitious carbon-saving measures and set tougher targets for renewable energy for new developments, as we move to a zero-carbon culture."

The Merton Rule refers to a policy adopted by the London Borough of Merton in its Unitary Development Plan in 2003, which stated that all new non-residential developments above a threshold of 1,000 square metres must incorporate renewable energy technology to generate at least ten per cent of the total predicted energy requirements.

Councils that wish to incorporate on-site renewable energy in planning obligations will be able to do so and the latest draft PPS on climate change required planning authorities to "ensure that a significant proportion of the energy supply of substantial new development is gained on-site and renewably and/or from a decentralised, renewable or low carbon energy supply".

Housebuilders and property companies have criticised the renewable energy plans, while UK insurers are currently calling for a new environmental review of existing planning policy to take into account the recent devastating summer floods across England and further investment in flood defences.

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