Controversy over rollback of Biodiversity Net Gain in UK

The UK Government is proposing a reduction in Biodiversity Net Gain requirements for small and medium-size developments, a move which has been criticised by environmentalists as a “watering down” of nature-friendly policies.

In what it described as “world leading” regulation, the Department for Environment, Food and Rural Affairs (Defra) last year had introduced a 10% Biodiversity Net Gain (BNG) requiring developers to leave wildlife habitats in a better state than they found them when building new homes. The goal was ensuring that “new developments enhance biodiversity and help deliver thriving natural spaces for communities”.

Now, as part of its mission to accelerate housebuilding and reduce red tape, the UK Government wants to “streamline requirements” and is seeking to exempt developments of less than ten homes from BNG, while simplifying the rules for medium developments of between 10 and 49 homes.

The Home Builders Federation had said that BNG had placed a “disproportionate burden on small and medium-sized home builders”, that have seen their market share shrink in the last few years.

Dozens of environmental groups have complained that these reduced biodiversity rules would mean the vast majority of housing developments would no longer need to compensate for nature loss.

“The government should not water down biodiversity net gain as proposed in this consultation”, said Anna Hollyman, co-head of Policy & Places at the UK Green Building Council. “The UK is one of the most nature-depleted countries in Europe. By proposing exemptions to biodiversity net gain that would encompass over 70% of housing developments, the government not only risks further degrading our unique wildlife but also missing opportunities to ensure high-quality green spaces are at the heart of new developments, benefiting the wellbeing of their residents and communities.”

The UK Government has also launched a consultation on the implementation of BNG for nationally significant infrastructure projects, stating that “the development of high-quality nature-positive infrastructure will support our mission to achieve sustainable economic growth”.

The proposal is to introduce BNG for infrastructure projects from May 2026, providing “a clear framework to ensure new major infrastructure developments leave biodiversity in a measurably better state than before development took place.”

The Environment Bank pointed out that the BNG policy is already helping housebuilders get planning permission faster, while also driving nature recovery, boosting rural economies and supporting farmers and local government.

“In England, BNG is already generating £454.6m in annual economic value, supporting nearly 4,500 jobs and restoring over 17,000 acres of land each year”, said Catherine Spitzer, CEO. “The BNG market is working across all levels, and we are already supporting major infrastructure developers, the likes of National Grid and Network Rail, major housebuilders such as Miller Homes and Barratt Redrow, as well as unlocking small housing sites with SME developers across the country. This arrangement is working well.”