Downing Street has blocked plans to release wild beavers in England because officials view it as a “Tory legacy”, the Guardian can reveal.

Natural England, the government’s nature watchdog, has drawn up a plan for reintroductions of the rodent, which until about 20 years ago had been extinct in Britain for 400 years, having been hunted for their fur, meat and scent oil. Beavers create useful habitats for wildlife and reduce flooding by breaking up waterways, slowing water flow, and creating still pools.

The reintroduction plan was signed off in recent weeks by the environment secretary, Steve Reed, who passed it to No 10. But there it was blocked by senior Downing Street officials, who were not in favour of the policy as they view it as a “Tory legacy”, sources said.