A controversial plan to build 500,000 new homes in the east of England over the next 20 years has been dealt a blow.

The East of England Regional Assembly (EERA) has withdrawn its support for the scheme which would see an extra 123,400 homes created in Essex alone.

The organisation described the Government's funding for transport infrastructure in the project as "grossly inadequate".

An EERA spokesman said: "The East of England Regional Assembly deplores the Government's grossly inadequate funding of the transport infrastructure costs associated with the additional 478,000 houses planned for this region between 2001 and 2021."