Peter O'Neill, marketing director of Keys Childcare, which runs 28 homes in the north of England, said councils should stop listening to "Nimbys" opposing planning applications.
"The government's own guidelines state that children should be placed close to their homes, but figures show nearly 2,000 young people live more than 20 miles away from their family home because there are insufficient local care places," O'Neill said.
He added that councils were too easily swayed by pressure from residents not wanting a children's home near their houses.
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