A mixture of environmental groups and other businesses have urged the government against getting rid of elements of Biodiversity Net Gain.
It’s speculated the government could halt plans to extend the scheme to Nationally Significant Infrastructure Projects (NSIPs) and remove small sites from requiring compliance.
Biodiversity Net Gain (BNG) is a mandate that came into force in early 2024 for developers to deliver at least a 10% uplift in biodiversity on their sites. When this isn’t possible, they must contribute to nature restoration projects elsewhere.
Emma Toovey, chief nature officer at biodiversity specialist Environment Bank, said: “If these rumours prove true, it will mark not just a setback, but a reversal of hard-won progress, jeopardising nature restoration and undermining investor confidence in the UK, and would do very little in terms of delivering on housebuilding targets.
“BNG was introduced to ensure development contributes positively to biodiversity rather than eroding it. Far from being a barrier to housebuilding or farming, BNG has unlocked new opportunities for landowners and developers to work together to restore nature.
“Our partners in the housing and agricultural sectors have embraced this approach, recognising that sustainable growth and environmental stewardship can go hand in hand.
“Rolling back these commitments would also send a damaging signal to investors. Over the past few years, the government has encouraged the market to develop around BNG, enabling infrastructure developers and institutional investors to make long-term plans.
“A U-turn now would shatter confidence in the UK’s credibility as a stable, investable market, sending a signal that long-term commitments can vanish overnight. Policy volatility of this kind risks deterring capital at a time when economic growth and environmental resilience should be mutually reinforcing priorities.”
In May the Ministry of Housing, Communities and Local Development said it would like to weaken the mandate for developers building sites of up to nine homes – which account for 70% of residential planning applications in the UK.
The government also considered introducing a ‘medium-sized site’ category with fewer restrictions for developments comprised of between 10 and 49 homes.
A coalition of 140 academics, lawyers and business leaders have also weighed in on the rumours, edie.net reports, penning an open letter to ministers. The group included representatives from Wates Group, Triodos Bank, Aldersgate Group and the Association for Consultancy and Engineering.
They said: “Such changes risk severe negative implications for private investment in nature, the burgeoning nature markets, businesses striving and succeeding in the creation of sustainable, healthy and resilient places and, most of all, the people that live in these places.
“Small sites form the backbone of our housing construction pipeline. BNG legislation ensures that these developments do not leave nature, or existing and new residents, in a worse position than prior to development.
“Removing BNG requirements threatens to undermine nature recovery at scale, including progress towards our legal Environment Act targets, and commitments in the Environmental Improvement Plan.
“It risks weakening confidence in the emerging nature investment market at precisely the moment when it is beginning to accelerate, and businesses are on board.
“This will also have profound consequences for placemaking, public health, social value, and long-term community wellbeing, potentially embedding a negative legacy in the built environment for decades to come.”