Introduction of
BNG to Local Plans in England
A statutory requirement for Biodiversity Net Gain (BNG) is fast approaching. With less than a year until the Environment Act 2021 transitional period ends (November 2023), Local Planning Authorities (LPAs) continue to evolve their planning frameworks to integrate BNG policy and align with the National Planning Policy Framework (NPPF). The technical consultation has concluded and the Government has published its response with further clarification and technical guidance. The updated Biodiversity Metric 4.0 is expected in due course.
In April 2022, Carter Jonas researched the 322 LPAs in England (the total number at the time of research) and analysed the proportion of those where BNG measures have already been incorporated into local plans, mandating measured net gain for most development schemes. We also looked at where BNG policies are progressing through emerging local plans, which are likely to be afforded greater weight in the decision-making process as they near adoption, and where it appears in supplementary planning documents (SPDs). We have revisited the status of the LPAs to see where further progress has been made.
In undertaking this research, we have deliberately counted only policies which make explicit reference to the requirement for developers to deliver measurable net gain using a recognised metric. Such policies are more prescriptive in their requirements and clearly align with the forthcoming requirements of the Environment Act. However, it should be noted that most local authorities are introducing or have in place generic policies which require biodiversity enhancements or net gain.
BNG policy status by LPA
BNG policy adopted
BNG policy emerging
No known policy
Measurable BNG policies
Source: Carter Jonas Research
Introduction of Measurable BNG Policy by Local Planning Authorities
Figure 1
As we near Autumn 2023, we can expect that more LPAs will consider outlining measurable net gain in their local plan reviews and become more specific in the how policy should be delivered. Such policies help to define how local authorities, communities, developers and landowners can work together to protect nature and help mitigate climate change.
Since our last update, the gap between those that at least have an emerging policy and those with none has narrowed, albeit only slightly. As of Q4 2022, just under 8.7% of LPAs (or 28) had adopted a net gain policy and 31.7% (102 LPAs) have one emerging, leaving 59.6% (192 LPAs) without any BNG policy. This represents a 64.7% increase in those who have adopted policies and a 39.7% increase in emerging policies.
In April 2022 (data to Q4 2021), Carter Jonas research reported that only 5.3% of the 322 LPAs (or 17) we assessed had adopted a BNG policy and 22.7% (73 LPAs) had policies emerging through local plan reviews. As such, 72.0% of all LPAs had neither adopted a BNG policy nor had
one emerging in their Local Plan.
Carter Jonas continues to monitor the adoption of BNG policies within local plans and the percentage gains they denote as this has important implications for developers whilst creating opportunities for landowners.
Biodiversity Net Gain Policy Introduction by Region (at Q4 2022)
Providing guidance on BNG and integrating into the Local Plan is a key action that LPAs can take in their strategies to address the climate emergency. As such, it is unsurprising that these LPAs have been more proactive in giving BNG full weight in their planning process. It signifies a commitment to environmental policy and acknowledges a local role in reaching climate change goals.
Source: Carter Jonas Research
Local Authorities Declaring a Climate Emergency versus Whether They Have a BNG Policy
Figure 2
Figure 3
Source: Carter Jonas Research
LPA Classification and Percentage of Adopted or Emerging BNG Policies over 10%
Figure 4
Supplementary planning documents (SPDs)
Rising by 33 LPAs over the year, there were 63 LPAs with SPDs providing measurable net gain guidance at the end of Q4 2022. This equates to 19.6% of all LPAs, with more consulting on SPD drafts at the time of our research. It is likely that LPAs will look to SPDs to provide interim advice while a local plan review is taking place or before the next local plan review is due. For instance, Greater Cambridgeshire is reviewing their Local Plan with a proposed net gain of 20% and, whilst that is progressing, has adopted the ‘Biodiversity Supplementary Planning Document’, affirming 20% net gain as
best practice.
SPDs offer LPAs a means to provide more timely and comprehensive guidance on planning matters. Where local plans are reviewed every five years, typically taking a couple of years from initial consultations to adoption, SPDs can take a matter of weeks to adopt. Although they do not form part of the Local Plan, they are material considerations in determining planning applications.
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Senior Research Analyst
Sophie Davidson
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Mark Russell
EMAIL robert
01223 346636
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Rob Preston
EMAIL kieron
0207 016 0735
Associate Partner
Kieron Gregson
Read definition of BNG
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Source: Carter Jonas Research
bristol
London
Leeds
Manchester
Birmingham
Measurable BNG policies
Geographical differences
Political
variation
Supplementary planning documents (SPDs)
Thoughts for the year ahead
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Spring 2023 Update
10 min read
As imposed by the 2021 Environment Act, all developments in England from Autumn 2023 will be required to deliver a mandatory 10% Biodiversity Net Gain (BNG), maintained for a period of at least 30 years. BNG is an approach to development and/or land management that seeks to leave the natural environment in a measurably better state. Habitat creation or enhancement can be delivered on-site, off-site or via statutory biodiversity credits, and is calculated using an approved Biodiversity Metric.
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Progress in local plan adoption
Geographical Differences
We continue to see greater progress in some regions, where some local planning authorities have triggered local plan reviews and are integrating BNG policy sooner. This may signal where demand for BNG solutions will emerge at a faster pace, particularly as many developers will be required to look for off-site credits and are likely to be competing for such. It may also indicate where landowners could benefit from the early introduction of BNG policy and determine their strategy accordingly.
Our earlier research showed that the South East had the highest number of LPAs with BNG policy either adopted or emerging in a local plan review. In the months to the end of Q4 2022, this number rose from 22 to 29 (comprising 5 adopted policies and 24 emerging), which continues to be the highest count by region. Being the region with the largest number of LPAs, this only amounts to 42.0% of the total number.
As a percentage of its total number of LPAs, the West Midlands is leading, as it was in our earlier research. The number of LPAs with adopted or emerging policies has increased to 17 LPAs, representing a significant 56.7% of the region.
Yorkshire and the Humber has seen the greatest progress, with the number of LPAs with adopted and emerging policies increasing from 6 to 11 (2 adopted and 9 emerging). This equates to an 83.3% increase, and accounts for 47.8% of all LPAs in the region. Also, the North West has seen notable improvement, increasing from 12 LPAs with policies adopted or emerging to 19 (4 adopted, 15 emerging). This reflects a 58.3% increase to reach 52.8% of LPAs in the North West region.
Meanwhile, 75.0% of LPAs in the East Midlands and 70.2% of the East of England have no emerging or adopted BNG policy. London, too, has a high proportion (69.7%) of LPAs yet to put BNG on the agenda. It may be the case that LPAs are awaiting the introduction of BNG in November 2023, as mandated by the Environment Act. The 2021 London Plan (the statutory spatial development strategy for the Greater London Authority) notes that, ‘The Mayor will be producing guidance to set out how biodiversity net gain applies in London’. Many LPAs within the Greater London area make reference to the London Plan in their individual planning policies, and so it is possible that they do not deem it necessary to address net gain separately.
It continues to be the case that greater progress is being made by those who have declared a climate emergency.
Political variation
There is a noteworthy difference between those who have declared a climate emergency and those who have not. As of Q4 2021, 29.3% of LPAs that had an adopted or emerging net gain policy had declared a climate emergency. This compares to 24.1% of LPAs that had an adopted or emerging policy but hadn’t declared a climate emergency. It continues to be the case that slightly greater progress is being made by those who have declared a climate emergency. At Q4 2022, there is still a visible gap, with 41.8% of LPAs that have an adopted or emerging BNG policy having declared a climate emergency, compared with 35.7% that have not declared a climate emergency.
There has also been an increase in the number LPAs that are proposing a greater level of net gain than the minimum statutory requirement. At Q4 2022, the number of adopted policies calling for a higher percentage of BNG had risen to two (from one), with 13 emerging (up from 9) through local plan reviews. Typically, these LPAs are imposing a requirement for 20% net gain, although some have specified specific types of development that are required to go above the statutory 10%. Of these LPAs, 80% have declared a climate emergency, signifying that environmental policy is a
high priority.
Located in a part of the country where the rate of biodiversity loss has been historically high, Greater Cambridge has affirmed that biodiversity and green spaces are a high priority and, accordingly, are seeking to introduce a 20% net gain requirement. South Cambridgeshire District Council’s ‘Doubling Nature Strategy’ (February 2021) provides a backdrop, detailing the opportunity that the area’s growth agenda poses for improving the natural environment.
Interestingly, the majority of LPAs that have adopted or have emerging policies calling for net gain greater than 10% are ‘predominantly urban’ locations. These local authorities account for 73.3% of associated adopted or emerging policies, which equates to 5.1% of all authorities in this classification. This compares with only 13.3% that are ‘predominantly rural’ (or 2.2% of the category), and the same percentage for those classified as ‘urban with significant rural’ (or 3.8% of the category).
In Birmingham, for instance, their ‘Issues and Options’ report (published October 2022) states that the Council is considering a higher percentage of BNG since ‘the majority of development sites will be on brownfield land with limited biodiversity value’. As such, it is claimed that the base biodiversity of developments will be low (although brownfield sites can also be biodiverse), and so a 10% increase will be negligible.
Other urban areas may be opting for higher levels to ensure the natural environment is enhanced for local communities, with the subsequent green spaces and better air quality delivering valuable health and wellbeing benefits to those in towns and cities. There is also a growing concern amongst policymakers that urban dwellers and children growing up in urban areas are at a risk of becoming disengaged from the natural world if they do not have ready access to green and biodiverse spaces. Increased levels of BNG provides a practical solution to this.
There are, however, proposals in the Government’s Levelling-Up and Regeneration Bill which would overhaul the use of SPDs. The revised planning system (expected to receive Royal Assent in Spring 2023) would abolish SPDs and, in their place, LPAs would be able to prepare Supplementary Plans which would be afforded the same weight as a local plan. As with SPDs, these are likely to be seen as a means to expand on how BNG policies should be implemented. Existing SPDs would remain in force with a time-limit (depending on the age of the current local plan), but we are likely to see some LPAs use Supplementary Plans in a similar way, albeit with greater authority.
Thoughts for the year ahead
As the statutory requirement draws nearer, we can expect more local plan reviews to commence and more measurable net gain policies to emerge. It must be noted that, regardless of whether LPAs have integrated BNG policy into their own frameworks or not, all LPAs will be subject to the mandatory requirement in November this year (or April 2024 for small sites). However, the LPAs that are already addressing BNG in local plan reviews and adopting SPDs allows us to identify and monitor how BNG is being applied in the planning decision-making process prior to this.
Concurrently, we are likely to see increasing variation in the implementation of BNG. For instance, some local authorities have been collaborating and creating joint policies. Greater Manchester Combined Authority’s ‘Places For Everyone’ is an example of this, calling for measurable net gain in line with national statute and providing guidance for the local authorities it encompasses.
Further, some local authorities are starting to develop their own habitat banks to help accelerate the BNG market and facilitate transactions within their localities. Plymouth City Council is an example of this, recently having signed off on a new ‘habitat banking vehicle’. These initiatives are likely to help speed up the delivery of developments within their boundaries by offering a ready-made BNG solution. It also allows transparency on the details of the habitat banks and for unit values and spending to be published. A similar approach is already adopted in places where financial contributions are levied towards mitigation under the Habitats Regulations Assessment regime (e.g. the creation of Suitable Alternative Natural Greenspaces, or SANGs). It does, however, raise an issue of an actual or perceived conflict of interest for LPAs selling units to applicants and whether applicants would have the option to go out to the wider market to purchase units.
As the market matures and becomes more transparent, we will be able to gain a better understanding of the scope of the market and the complexities that arise from it. Carter Jonas is advising landowners and developers on navigating BNG policy and potential solutions, but a case-by-case, tailored approach is a necessity, so please contact us for further information.
There has been an increase in the number LPAs that are proposing a greater level of net gain than the minimum statutory requirement