Biodiversity net gain

The Savills Blog

Planning for biodiversity net gain

A consultation on BNG

The Government is out to consultation on regulations and implementation of biodiversity net gain to be delivered as a result of planning for new development.

Part 6 and Schedule 14 of the Environment Act 2021 makes provision for biodiversity net gain to be a condition of planning permission in England. This is step change in planning for development, where under the consultation, open until 5 April 2022, the Government is looking to define the approach to be taken. 

Mandating of biodiversity net gain associated with development and wider measures follow on from the 25 Year Environment Plan, published in 2018. The 2021 Act includes transitional arrangements for delivery of at least a 10 per cent net gain in biodiversity over pre-development levels, and the consultation suggests that this will apply to new planning applications from November 2023. At this stage it is unclear whether this means new applications post-introduction of the measures rather than retrospectively.

Under the current planning system there is a patchwork of policy and guidance on biodiversity. The National Planning Policy Framework requires planning policies and decisions to minimise impacts on and provide net gains for biodiversity, including by establishing coherent ecological networks, but it stops short of setting a national minimum. Some Local Planning Authorities have brought in a policy minimum through Local Plans but often this has fallen at examination stage due to lack of evidence on matters such as development viability.

The intention under the consultation is for planning applications to be accompanied by information as to how a net gain in biodiversity might be delivered and for the grant of planning permission to be subject to a pre-commencement condition to be discharged prior to development taking place.

Considering and delivering BNG

A biodiversity gain plan, using a standard metric, will measure area-based habitats and any relevant linear habitats to arrive at the measurement of what biodiversity units are required.

A spatial hierarchy comprising a preference for local enhancements is proposed with the aim being to first try to avoid or reduce biodiversity impacts through site selection and development layout. Where unavoidable, the next level is to enhance and restore biodiversity on-site and if this is insufficient then off-site habitat can be created or, as a last resort, statutory biodiversity credits will be capable of being purchased from the Government.

Measures for biodiversity net gain through the planning system are intended to be aligned with the emerging process of digitisation of the planning system which was a theme within the 2020 Planning White Paper.

While the Government is not intending to establish a centralised trading platform for biodiversity, land that is available for biodiversity net gain can be registered on a national biodiversity gain site register.

There will be an obligation placed on local planning authorities to publish biodiversity reports every five years, thereby measuring results.

Savills View

The devil is always in the detail and while the consultation is quite extensive, the range of measures under consideration gives rise to more questions.

Developers should now be factoring in what options are available for biodiversity net gain associated with development, because even ahead of introduction of the minimum 10 per cent provision, some local authorities aspire to capturing gains above NPPF policy.

Land agreements and development viability will need to take into account such measures, which is especially relevant if the net gain relies on off-site provision. The purchase of land interests or purchase of biodiversity credits will add to the cost of development.

In practice, the pre-commencement of development planning condition may need to take into consideration phasing of development and if the biodiversity gain plan includes off-setting through land and/or financial contributions off-site, this will have to pass the Community Infrastructure Levy and NPPF tests on planning obligations.

Savills will be responding to this consultation and intends to publish the response in due course.

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