A new NAO report has identified significant risks in Defra’s Biodiversity Net Gain Scheme. The findings highlight incomplete preparations and concerns about the effectiveness of local authorities in enforcing the new requirements
A new report by the public spending watchdog states that the Biodiversity Net Gain Scheme, launched last February, faces risks to its long-term effectiveness.
What are the new BNG rules?
The new rules require developers to improve the habitats they harm by a net 10%, ideally on-site.
When on-site gains are not enough to meet the 10% requirement, the developer can create off-site gains elsewhere or purchase them through a new private market for biodiversity units.
BNG is being implemented in three stages:
- Major developments in scope from February 2024
- Small developments from April 2024
- Nationally significant developments from November 2025.
There are concerns over the long-term success of the new policy
However, the National Audit Office has warned that Defra launched its policy before having all the elements in place to ensure the long-term success of statutory BNG.
For its market-led approach to work, Defra needs the market to scale up to meet demand and for statutory biodiversity credits to deliver biodiversity when the market fails to do so.
The report, published today (17 May), also states doubt about whether local authorities will be able to discharge these duties effectively.
In addition, it is not clear whether Defra will have sufficiently granular monitoring data to assess policy performance.
Without these, Defra will not have assurance that its statutory BNG policy is delivering biodiversity outcomes and value for money for taxpayers.
Defra must plug the gaps in its information to ensure the scheme’s success
Gareth Davies, head of NAO, commented: “The statutory biodiversity net gain scheme is the first national scheme of its kind to build requirements for enhancing biodiversity into planning approval. However, it was launched with risks to the long-term effectiveness of the policy.
“These include uncertainty about whether the fledgling market for biodiversity units scales up to satisfy developers’ demand, risks to enforcement and gaps in its information.
“Defra must address these issues, including by plugging gaps in its information so that it can effectively evaluate the scheme’s success.”
