The Government failed today to block a Tory backbench Bill to allow councils to set minimum energy generation and efficiency standards for new housing developments.

Junior communities and local government minister Iain Wright said the Planning and Energy Bill was unnecessary as a government planning policy on climate change achieved "the same ends".

But the Bill was given a second reading by 45 votes to nil and now goes to committee.

Without Government backing, however, it stands little chance of becoming law.

Tory former minister Michael Fallon (Sevenoaks) said his Bill would enshrine in law the so-called "Merton rule" for new housing developments.

The London Borough of Merton adopted a planning policy five years ago requiring that at least 10% of the energy needed must come from renewable or low carbon sources, on or near the development, he said.

"The aim was to reduce the amount of energy that had to be brought in from miles away, to encourage microgeneration and more energy efficient buildings."

Mr Fallon said the measure, which has cross party support, did not compel councils to follow suit, although about 100 had already done so.

It would give "Merton-style planning policies" statutory protection by allowing councils to insist on "reasonable provision" for renewable and low carbon generation and energy efficient homes.

Ministers, he added, had "blown hot and cold" over the policy when councils needed certainty to help meet the challenge of climate change.

Mr Wright said that while the Government agreed on the need for radical action to combat climate change, the Government's own planning policy statement, issued in December, rendered the Bill unnecessary.

"I don't think the Government can support this Bill because while we support the ends we can achieve it by different means."