Local authorities are to be given greater discretion to sell off their land, the government announced on Monday.

Planning minister Keith Hill has given local councils power to sell off land for less than its market value without having to seek the government's permission.

Councils will be able to dispose of land held under the Local Government Act 1972 which they consider "will contribute to the promotion or improvement of the economic, social or environmental well-being of the area" providing the undervalue does not exceed £2 million.

"If local authorities are going to provide a steady supply of land they need the authority to make decisions without being tied up in red tape," Hill said.

"The new General Disposal Consent 2003 will give local authorities much greater freedom to make these decisions about land use. This can only be a benefit to the community."

The change in approach follows consultation carried out between December 2002 and March 2003.