Watchdog warnings on biodiversity scheme

‘Biodiversity net gain’ (BNG) requires developers to finance the creation of habitat that not only replaces what has been lost to development but boosts habitat overall by 10 per cent.

Under the programme – which applies to England and started to come into force in February – the gains for nature should ideally be on site.

If that is not possible, they can be delivered off-site by the developer, or purchased through a new private market for ‘credits’ to pay for work elsewhere.

The NAO warned that the Department for Environment, Food and Rural Affairs was relying on a private sector market for biodiversity credits emerging, so developers could purchase them to meet their obligations.

But the department did not know how rapidly the market could scale up or if it could satisfy demand, with just two sites offering 35 hectares (86 acres) of habitat gain on the official register by May.

The NAO added councils had not received additional funding for compliance and enforcement.

An LGA spokesperson said: “It is important that councils are properly funded and that measures are quickly put in place to ensure the land is available for BNG off-site, for instance by allowing BNG on council-owned land in the short term.”

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