The Environment Act 2021 has recently introduced the statutory requirement of Biodiversity Net Gain (BNG), but what does this really mean? BNG is the concept that the biodiversity on a site will be left in a better state after any development has taken place. For the majority of landowners and developers it will become a mandatory requirement to ensure that there is a 10% increase in the biodiversity value of any site post development. It is likely to affect all planning permissions but whether this includes Permitted Development is, as yet, unknown. This set increase, expected to come into force in November 2023, is a minimum requirement and it may be that individual local planning authorities choose to demand a higher percentage increase.
The biodiversity of a site is reviewed on the biodiversity metric prepared by Natural England. This evaluation must be undertaken by a competent person and allocate a condition score to each habitat. The biodiversity metric delivers a formula for calculating current and required levels of biodiversity which will, in turn, become the basis for the BNG requirements needed for the development. Ideally, it is favourable for developers to provide the gain on the site of the development but there is an option to provide the BNG off-site or by purchasing statutory credits.
November 2023 is fast approaching, and developers and landowners will need to become familiar with the concept of BNG. Planning ahead is key to ensure any delays are minimised and developers will need to take into consideration any extra costs in creating habitats to ascertain the viability of a site. Over the next 12 months there are still gaps which need to be filled; what are the tax implications for landowners? How will developers respond? Will developers pay a rent to landowners, or will this be a capital payment? Fulfilling the 10% BNG obligation will need careful planning and understanding by both developers and landowners. As ever, the devil will be in the detail which we have yet to find out!
Harriet Jones is a Rural Surveyor at Barbers Rural and can be contacted on 01630 692500 or h.jones@barbers-rural.co.uk