A private member’s bill to strengthen the so-called Merton Rule has passed its second reading in Parliament.

After the committee stage, Michael Fallon’s Planning and Energy Bill will go back before Parliament on 9 May.

The controversial policy, introduced by the London Borough of Merton in 2003, sets a 10% quota for renewable energy use in new developments.

If the bill becomes law, councils could legally demand quotas for on-site and near-site renewable energy in development plans.

The government opposes the bill but Fallon has cross-party support and the backing of three former environment ministers.

Supporters believe the government is trying to water down the quotas which have been adopted by more than 100 councils following Merton’s example.

In December the government issued advice on Merton rules which says they must be “flexible”.

Fallon said that the bill gives councils statutory protection if they want to adopt Merton-style policies.