Where do we stand with BNG right now?

Building development has been a significant driver of habitat loss in the UK for decades. As part of the government's commitment to securing nature's recovery and protecting 30% of the UK's land by 2030, Biodiversity Net Gain (BNG) was introduced as part of the 2021 Environment Act. BNG is a tool that compels developers to leave habitats in a better state than before they started. It requires developers to take a baseline biodiversity measurement of their site (measured in ‘biodiversity units') and improve this figure by at least 10% following development.  

BNG has a mitigation hierarchy, whereby avoiding habitat loss in the first place and delivering gains onsite is preferred, however if this is not achievable there will be options to buy biodiversity units offsite. This gives landowners the opportunity to improve biodiversity on their own land and sell on biodiversity units to developers. 

 

Eleventh Hour Delay to Legislation

BNG legislation was originally supposed to come into effect in November 2023, and would have applied to developments in the Town and Country Planning Act 1990, with some exemptions. However, in September the government announced it was delaying the rollout of BNG.  

After recent policy announcements including delaying the phaseout of fossil fuel boilers and ditching energy efficiency targets in private rented homes, there were concerns that BNG was being watered down too. But it was clarified that BNG requirements would come into force by January 2024, only 2 months later than originally planned. Furthermore, there will be no knock-on effects on BNG requirements for small sites and Nationally Significant Infrastructure, which will still have to comply with regulations from April 2024, and 2025, respectively.

 

Why the delay?

With the original deadline fast approaching, the government had yet to announce key details of BNG policy. These included the statutory biodiversity metric for calculating biodiversity gain, templates for the draft biodiversity gain plan and Habitat Management and Monitoring Plan, and general guidance on delivering mandatory BNG for landowners, developers, and Local Planning Authorities. 

The government has promised to release all these details by the end of November at the latest, leaving 1 month for landowners, developers, and other relevant stakeholders to familiarise themselves with the final details, prior to BNG going live in the new year. Trudy Harrison, the Minister for Natural Environment and Land Use, has said the delay and soon-to-be released guidance will “help smooth the transition” to mandatory BNG. 

 

What does this mean for you?

For developers, planning applications submitted before the end of 2023 will not be subject to mandatory BNG requirements (although many Local Planning Authorities already have rules in place around biodiversity). But developments submitted from January 2024 onwards will be required by law to deliver a 10% net gain in biodiversity. For developers unable to deliver this gain onsite, there will be the option to purchase compensatory biodiversity units from landowners. If the private market is unable to provide, DEFRA will sell statutory biodiversity credits as a last resort. These have deliberately been priced uncompetitively, with units starting from £42,000 and rising to £650,000, depending on habitat type, and two units having to be purchased for every unit replaced. 

For landowners considering improving biodiversity on their land (or already doing so), with the aim of selling on biodiversity units, this small delay will not make too much difference. BNG requires long-term commitment, and considerable thought needs to be put into planning and implementing projects. Once an agreement has been made with a developer, any habitat created must be maintained for 30 years. 

For now, developers, landowners and Local Planning Authorities are all waiting for the government to publish final details of BNG by the end of November. But for further information about what we know already, look out for future blog posts on habitat banking and whether we are ready for BNG, or contact tommy@tomsonconsulting.co.uk for more information.