Early Introduction of
BNG to Local Plans in England
Mandatory Biodiversity Net Gain is on the horizon, and some local authorities have started to develop their planning framework accordingly.
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 the approved Biodiversity Metric 3.1. This means that, before the commencement of the property or infrastructure development, planning applicants need to quantify the existing and proposed biodiversity values of their site and demonstrate that the intended gain exceeds the loss of the development project by at least 10%.
Carter Jonas has researched the 322 Local Planning Authorities (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, where they are progressing through emerging local plans and where BNG appears in Supplementary Planning Documents (SPDs).
As time progresses and the statutory requirement of the Environment Act comes into force, such policies will unfold through local plan reviews and supplementary planning guidance will become more specific in the percentage gains expected and how these shall be delivered. Carter Jonas is monitoring this as it has important implications for developers whilst affording opportunities for landowners.
What is the importance?
BNG policy status by LPA
BNG policy adopted
BNG policy emerging
No known policy
Nationwide Adoption of BNG
Regional Differences
East Midlands
East of England
London
North East
North West
South East
South West
West Midlands
Grand Total
Yorkshire and the Humber
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Percentage of Local Authorities
Net Gain Policy Adopted
No BNG Policy
Net Gain Policy Emerging
Source: Carter Jonas Research
Biodiversity Net Gain Policy Introduction by Region
Figure 1
Net Zero and BNG policies have shared high level goals to impact positively on Climate Change. But, at the practical level, there will be a number of different motives and implications for those active in the BNG marketplace.
Subsequent habitat enhancement and creation can also have a positive impact on the wellbeing of local people, who experience a more enjoyable place to live and work. BNG can change the supply of ecosystems and green space within a locality or provide access to them, improving local communities and generating support for development projects.
For local planning authorities (LPAs), guided by the National Planning Policy Framework (NPPF), embedding a minimum net gain mandate on new development proposals in local plans creates a uniform and consistent guideline to follow. Where most LPAs already require some level of biodiversity enhancement from developers, the new Act provides statutory conformation of a requirement to enhance or create habitats. Metrics and policy are imperative to the success of BNG by informing design and planning processes.
Considering that local plan policies are still developing, it is unsurprising that the number of local authorities in England that have implemented policies that align with the Environment Act is currently low (see figure 1). Only 5% of the 322 LPAs we assessed have an adopted BNG policy, mandating measured net gain for most development schemes. 23% of LPAs have emerging policies, which are likely to be afforded greater weight in the decision-making process as they near adoption. 72% of all LPAs have neither adopted a BNG policy nor have one emerging in their Local Plan.
However, this is not to say that those LPAs without a BNG policy are doing nothing or have no intentions in the coming months. 19 of those LPAs with no formal or emerging BNG policy have SPDs in place, which provide additional guidance alongside planning policy. They do not have the same weight in the decision-making process as policies in local plans, but they are taken into account as material considerations in dealing with planning applications. Some local authorities have both an SPD and an emerging policy.
Some regions have seen their local authorities be more proactive than others in giving measurable BNG full weight in the planning process. This may go some way to indicate which areas will follow next and where developers and landowners should be refining their strategies.
Ten (3.2%) of the LPAs in England have gone above and beyond the 10% minimum Biodiversity Net Gain stipulated in the Environment Act and are seeking, in some or all cases, a minimum of 20% net gain. Six of these are in the South East (Guildford, Maidstone, Mid Sussex, Mole Valley, Swale and Worthing), two in the South West (East Devon and Swindon) and one each in both the North West (Rossendale) and the East of England (Greater Cambridgeshire). We anticipate that many other LPAs will follow suit and mandate a level of net gain higher than 10%.
The West Midlands is leading the way, with 53% of LPAs having BNG policy on the agenda, either adopted in their Local Plan or emerging, compared to 28% nationally. When looking at the raw numbers, the South East has the highest number of LPAs with policies either adopted into their local plan or emerging, representing 32% of the total region.
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.
Subsequent habitat enhancement and creation can also have a positive impact on the wellbeing of local people, who experience a more enjoyable place to live and work.
Many businesses, including developers, have made explicit commitments to both their environmental and social impacts. Being proactive in measurable net gain will provide consistency with their Environmental Social and Governance (ESG) targets and, in some locations, going even further beyond the BNG baseline could move businesses closer to their goals. Accommodating BNG from an early stage and engaging with LPAs during the planning process will help avoid pitfalls further down the line.
By changing land management for biodiversity, engaged landowners can sell BNG credits in return for an income stream from developers who are utilising off-site solutions for net gain. As the Environment Act denotes that habitats must be secured and maintained for at least 30 years, this has the potential to offer valuable, long-term income.
The figures so far provide us with a comprehensive picture of the wider integration of BNG into planning policy. Though some local authorities have been slower to act than others, there are indications that more policies will be coming forward in the immediate future in preparation for the Autumn 2023 deadline imposed by the Environment Act.
Though some local authorities have been slower to act than others, there are indications that more policies will be coming forward in the immediate future.
At the other end of the scale, the East Midlands has seen the lowest introduction of BNG policies, with 88% of LPAs in the region having neither a formal policy in place nor a policy emerging within their policy framework. Against an average of 72% of LPAs across England, this percentage is particularly high. Although a small number have policies in discussion, all LPAs in London and the North East are yet to have an adopted BNG policy in their Local Plan.
As an example, the Greater Cambridgeshire Shared Planning service is seeking to introduce a minimum of 20% BNG as a requirement through its emerging Local Plan, showing a stronger sentiment towards BNG. This has been justified due to the pressure to provide greenfield land for development and the subsequent biodiversity loss, recognising the threat development has on natural habitats.
Passing of climate emergency motions demonstrates commitment to environmental policy and acknowledges a local role in achieving climate change targets.
71%
76%
29%
24%
Climate Emergency Declared
No Climate Emergency Declared
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Number of Local Authorities
BNG Adopted or Emerging
No BNG Adopted or Emerging
Local Authorities That Have or Haven't Declared a Climate Emergency and Whether They Have a BNG Policy Yet
Identifying which LPAs have declared a climate emergency may infer where BNG is being discussed away from formal processes and which areas are likely to support BNG policies in the near-term. Passing of climate emergency motions demonstrates commitment to environmental policy and acknowledges a local role in achieving climate change targets. Planning, in shaping the way the jurisdiction grows and changes, is a vital instrument in achieving this.
239 local authorities have declared a climate emergency, representing 74% of the 322 local authorities we have assessed across England. Of the 239 local authorities that have declared a climate emergency, 169 (or 71%) are yet to adopt a policy which requires measurable BNG. This percentage is marginally higher for local authorities that have not declared a climate emergency, 63 (or 76%) of which have no adopted or emerging BNG policy.
Again, there are regional disparities. Notably, only 51% of local authorities in the East Midlands have declared a climate emergency, compared to 85% of London. It may be the case that BNG is being treated as a lower priority in London as, being an urban area, the baseline biodiversity value of sites will generally be lower and therefore the impacts of development reduced.
However, this prioritisation is not a theme that can be seen across all urban local authorities. It is interesting that local authorities classified as urban are somewhat more likely to have declared a climate emergency and are more likely to have adopted or emerging BNG policies in their Local Plan, as figure 3 illustrates. The demand for construction in urban areas and the scarcity of on-site and off-site BNG options pushes BNG up the agenda.
Predominantly Rural
Predominantly Urban
Urban with Significant Rural
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
% of Local Authorities
% of LAs with BNG Adopted or Emerging
% of LAs that have Declared a Climate Emergency
Source: DEFRA, Carter Jonas Research
Rural and Urban Local Authorities and Adoption of BNG Policy and Climate Emergency Motions
25%
28%
68%
70%
79%
29%
Figure 2
Figure 3
The Impact of
Planning Decisions
0 - 3
70 +
40 - 69
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
% of Local Authorities
Number of Major Planning Decisions (Year Ending Sept 2021)
LA with a BNG policy adopted or emerging
LA with no BNG policy adopted or emerging
Source: Department for Levelling Up, Housing and Communities, ONS, Carter Jonas Research
Major Planning Decisions by Local Authority and Whether they have an Adopted or Emerging BNG Policy
78%
62%
58%
38%
42%
22%
Research into the number of major development planning decisions made by each LPA shows a correlation between those that have made more planning decisions and those that already have a BNG policy integrated into and emerging through their Local Plan. Department for Levelling Up, Housing and Communities data reports that, in the year ending September 2021, 5,603 major development planning decisions were made in England for residential dwellings, offices, industrial use, retail accommodation and traveller pitches. Major developments are any developments where the number of residential units to be constructed is higher than 10, the commercial floor space is over 1,000 square meters or the site is 1 hectare or higher. These developments would fall within the scope of BNG and would need to demonstrate net gain to varying extents once the statutory BNG requirement is in place.
Figure 4
While 42% of local authorities that made 70 or more major planning decisions in the year to September 2021 have an adopted or emerging BNG policy in their Local Plan, only 22% of those that made between zero and 39 have (figure 4). Considering that 28% of local authorities in England have an adopted or emerging BNG policy, the number of major planning decisions has had a significant impact, with those that have made more major development planning decisions leading the way. The LPAs that have responded early will ensure that they capture more developments that would be required to deliver net gain, capitalising on the benefits of BNG to the community and wider net zero targets in advance of the specified deadline. For those local authorities that are making more planning decisions, it is advantageous to take action sooner.
Land Uses and the Importance
of Non-Developed Land
Major developments will put the supply of undeveloped land available for BNG purposes in high demand. Interestingly, the average number of major planning decisions was marginally lower in urban local authorities than in rural areas last year, with the average number at 34 and 42 respectively. Predominantly urban areas, which have lower levels of undeveloped land, will have a lower risk of habitat loss and so are less likely to need to demonstrate net gain. However, this does mean that any developments that need to deliver BNG will have limited opportunities to provide this on-site and so will be heavily reliant on off-site BNG contributions.
According to data from Department for Levelling Up, Housing and Communities, 91.5% of land in England is not developed. As seen in figure 5, the level of non-developed land and the use of that land varies depending on how a local authority is categorised. Looking into the composition of land indicates where challenges may arise and where opportunities for developers and landowners lie.
Selecting land for off-site solutions will be guided by the land’s geographic proximity to the development site. Recreating a type of habitat in a different location may reduce its biodiversity value and may result in some areas experiencing unequal levels of habitat depletion. Further, those who benefit from BNG in the new location will not be those in the vicinity of the development, depriving those communities of BNG’s advantages. Land used for BNG that is local to the impact site will be rewarded with a higher score under Biodiversity Metric 3.1; the ‘spatial risk’ multiplier is calculated according to the intended location which, along with the time to reach the target condition and the difficult to achieve, determines how many biodiversity units the proposed habitat creation will generate.
Agricultural land, which accounts for 68% of land in predominantly rural local authorities, is thought to best accommodate off-site BNG through a contract between a developer and landowner, public or private. A landowner, for example, might take arable land out of production and create woodland or heathland in areas where the proportion of arable land is higher. This is less feasible in local authorities that are predominantly urban, for which agricultural land constitutes 28% of its land use. There may be other opportunities in urban areas, such as enhancement of rivers and streams or areas of pasture, or management of woodland.
Predominantly urban areas, which have lower levels of undeveloped land, will have lower risk of habitat loss and so are less likely to need to demonstrate net gain.
Predominantly Rural
Predominantly Urban
Urban with Significant Rural
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
Percentage of Undeveloped Land
Average % of Agricultural Land
Average % of Rough Grassland
Average % of Water
Average % of Other Undeveloped Land
Average % of Forestry / Woodland
Average % Natural Land
Source: Department for Levelling Up, Housing and Communities, Carter Jonas Research
Land Use by Type of Local Authority
Figure 5
Offsetting far from the development site will sometimes be unavoidable. As a result of the spatial risk multiplier, this would result in developers having to deliver BNG over a larger land area or to a better condition. Although it may appear that the proportion of undeveloped land in predominantly urban local authorities is sufficient, a high percentage of this land is not available as for BNG use. Falling under ‘Other Undeveloped Land’ in figure 5, 30% of land in urban areas is used for outdoor recreation or residential gardens. For instance, residential gardens in Birmingham, a predominantly urban local authority, accounts for 28.8% of its total land use. This accounts for almost half of the local authority’s undeveloped land, which is 58.4% of its overall land area. Only 6.33% of the land is agricultural and 3.18% is forestry or woodland. The local authority made 184 major development planning decisions in the year to September 2021, the highest number in England, so it can be expected that there will be significant demand for off-site BNG opportunities and little availability of land to satisfy that.
Nonetheless, off-site BNG contributions will, in some cases, be more beneficial than on-site delivery. Firstly, it could be favourable to developers who would otherwise have to put aside a significant proportion of on-site green space. This would reduce the density of the development, adversely impacting the development value. As such, off-site credits could be more cost effective and outweigh the disincentive in the metric calculation. Also, it could have a better environmental impact since habitat banks that are located further from urban areas would face far less recreational disturbance. They would also not be subject to the same pressures put on urban parks to appear neat and tidy and, so, ecosystems can be left to flourish uninterrupted.
Any development that looks to off-site solutions to BNG will face competition for land available for such purposes. This could, in theory, push land prices up, pricing out some agricultural players in the market for whom prices could become unaffordable. Nevertheless, for existing landowners sale of BNG credits does present potential diversification of income opportunities. As urban local authorities are slightly ahead in the proportion of LPAs with BNG policies, supply pressures are likely to arise faster.
It is possible that the opposite may also be true; a large number of landowners may opt in and the market could become oversaturated. However, data from Farmers Weekly shows that publicly marketed land supply in 2021 was 44% below the 5-year average at 64,045 acres, suggesting it will take some time for the market to balance out, let alone be at a surplus.
There may be other opportunities in
urban areas, such as enhancement of rivers and streams or areas of pasture, or management of woodland.
Biodiversity Net Gain policies are being introduced across England, informed by the progress of Local Plans in different areas and by demand at local authority level. Some LPAs have been more proactive than others ahead of the Autumn 2023 deadline; adopted or emerging BNG policies occur more frequently in urban LPAs, those with an established green agenda and those that made more major development planning decisions. A small number of LPAs, mostly in the South East, are mandating a level of net gain higher than the 10% stipulated in the Environment Act.
As we near and surpass the Autumn 2023 date prescribed in the Environment Act, we expect that demand for land will rise substantially. It is critical to be aware of the implications for development schemes and the importance of early consideration in the planning process; Carter Jonas’ Planning team can provide advice and help guide best practice. Incoming policies offer opportunity to both developers and landowners who have a mutual commitment to a positive outcome, benefitting the natural environment and ecosystems and, in turn, local communities.
In view of the strategic benefit of using land closer to the development site and the composition of undeveloped land in predominately urban local authorities, it is likely that available land will be in high demand. This may result in an upward pressure on land values as new buyers enter the market with ‘green’ money and compete for land in close proximity to development sites.
For rural landowners, there is a potential to promote and manage land for BNG offsetting, with longer-term income opportunities. We would encourage landowners to speak to professionals within our Natural Capital experts who are closely monitoring changes in policy and legislation and can help to advise on the best way to capitalise on these opportunities. Carter Jonas’ GIS team have also designed a map-based version of the Biodiversity Metric which can help developers and landowners assess their options at an early stage.
Summary
Get in touch
EMAIL SOPHIE
020 7493 0685
Senior Research Analyst
Sophie Davidson
EMAIL Mark
01223 346628
Partner
Mark Russell
EMAIL robert
01223 346636
Senior Planner
Rob Preston
EMAIL kieron
0207 016 0735
Associate Partner
Kieron Gregson
Contact us to find out more
Contact us to find out more
Source: Carter Jonas Research, Climate Emergency UK
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What is the
importance?
Nationwide adoption of BNG
Regional differences
The impact of planning decisions
Land uses and the importance of non-developed land
Summary
Contact us
April 2022
15 min read
Bristol
London
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Introduction