A leading city councillor has welcomed a new report saying that developers should be given greater freedom to build on Green Belt land.

Policy Exchange said the Government’s current housing policy failed to do enough to provide homes where people wanted to live, in cities and suburbs.

And it called for firms to be offered incentives to create a string of new “garden cities” next to existing urban areas.

The report said developers should be free to build across swathes of Green Belt land if less than half the population lodged an objection.

Deputy leader of Oxford City Council Ed Turner said: “I can’t agree with everything in the report but, broadly speaking, I agree with its aims.

“It’s an interesting report, which powerfully makes the point that not all land which is designated as Green Belt is necessarily of great environmental value.

“In Oxford, for instance, it contains a sewage works. Ironically, being unable to move the Green Belt outwards leads to increased commuting and therefore higher levels of pollution.”

But John Cotton, South Oxfordshire district councillor, said: “The Green Belt’s purpose is to contain the expansion of cities and that purpose still stands.

“Any new national policy framework needs to include controls on development in the Green Belt.”

Policy Exchange accused the National Trust and other campaigners of peddling a myth that the green belt was made up of meadows and nature reserves.

Under proposals included in the new report, town halls would lose the power to decide on whether major new housing projects went ahead, even on Green Belt land.

Instead, councils would be paid by developers to canvass opinion among residents in the area affected – with approval automatically given if fewer than 50 per cent of residents objected.

Colin Cook, city council executive member for development, said: “About 1,000 homes are planned as part of the Barton West development and a planning inspector will hold an inquiry on the plans in July.

“But I don’t think you could describe the development as a garden city – the days of 150ft gardens are long gone.”