My Lords, I refer to my entry in the register. The draft instruments—the Biodiversity Gain Site Register (Financial Penalties and Fees) Regulations 2024 and the Biodiversity Gain (Town and Country Planning) (Consequential Amendments) Regulations 2024—were both laid before the House on 30 November. The instruments have been grouped as they are part of a package of regulations which work together to introduce the new framework for mandatory biodiversity net gain. Although biodiversity net gain is a key policy delivered by the Environment Act, some of the policy involves amendments to the planning system. I will speak to both instruments together, given their interlinks, but I will not profess to be an expert om the intricacies of the planning system and commit to writing to noble Lords on points of particular detail.
The instruments laid before the House today form part of a package of SIs that will commence the new, world-leading biodiversity net gain requirement. This is a new approach to development and land management that was legislated for in the Environment Act 2021 and had strong support across both Houses. It aims to leave the natural environment in a measurably better state than it was beforehand through requiring a 10% net gain for biodiversity on each eligible grant of planning permission. These gains must be delivered, first, through on-site habitat enhancement or creation where possible, then through off-site enhancements or through purchasing units from the market and, finally, as a last resort, through purchasing statutory credits sold by the Government.
A public consultation on the policy and implementation of biodiversity net gain was held in 2022. The government response, published at the beginning of 2023, confirmed the policy intention for mandatory biodiversity net gain and has informed the drafting of these regulations.
My Lords, I was expecting more people than this. I thank the Minister for his introduction, and I think it is very clear that what we are looking at here are two instruments from a very major set that will finally implement the idea of biodiversity net gain, which your Lordships’ House and the other place have been debating for what now feels like many years.
Before looking at the detail of these two statutory instruments, I think that it is worth thinking about what we are talking about here. We are trying to deliver a system, however much some of us—I include the Green Party in this—have doubts about it, that means that we do not keep going backwards. As we stand in the House tonight, we are about to see the destruction of a veteran oak tree in Melton Fields in East Riding for the construction of an Amazon warehouse. I have been on the site and seen this happening. The biodiversity net gain that is being offered is “We will have some wetlands over there”—I am not quite sure where the sign that says “Birds, go that way” will be—but there is huge concern and there is still so much that we are losing. I think it is crucial that we see that.
I have a couple of questions about the instruments that I would like to put to the Minister. He talked about ensuring full cost recovery in the fees being charged. What will be the situation for projects for the public good, such as a new hospital for the NHS, a community centre or group? What provision is there to make sure that the people who can afford to pay are paying and that those community projects are not stopped but able to go ahead?
The other point which I think reporting in recent days has raised—this fits in with the levelling-up Bill that your Lordships’ House spent an inordinate of time on last year—is that we are seeing controls being put on for more than 10% biodiversity net gain, and that is overwhelmingly concentrated in the south of England, where there are local area partnerships. In terms of these instruments, but also more broadly, will there be allowance for the regional differences, the regional cost differences and, perhaps even more importantly, the regional ability to pay, in the provision in these statutory instruments?
My Lords, this is a thoroughly good change and we should be entirely pleased that we are taking this step because it is a step that we have not taken before. I sometimes argue with the noble Baroness, Lady Bennett, but saying thank you is important if we are to get Governments to do more, so I start by saying thank you.
I recently attended a very interesting conference in Essex in which an expert explained exactly how this system worked. I am now much better informed, but it took some time to explain it in a way that, to put it simply, ordinary people understand. I hope the Minister agrees that we need to explain this much more effectively than we have until now if we are to get people to join in the “thank you” I started with.
I know that the Minister has rightly suggested that he is not an expert on planning, but he will understand when I say that I am disappointed that this Government have still not introduced the necessary overarching element in the planning laws that says that no planning permission should be given unless it fully takes into account the national statutory requirement for net zero in 2050 and the two important promises that we made at COP 26 on the targets for 2030 and 2035. Until the planning system as a whole insists that decisions are made within that context, the planning system will not be working properly for us to be able to deliver what we now, by law, have to deliver.
He may want to write to me on this subject, and it may be a long letter, but if it does not say, “Yes, we are going to do it”, it will not be acceptable because we have to do that as a central issue. It is barmy to have a planning system in which we fiddle about with little bits of what my noble friend said were technicalities when we cannot make the fundamental decision that the planning system itself should be beholden to the Government’s and the nation’s commitment to net zero.
Lastly, I hope that the Minister will be very careful about how this thing works. There are real issues about how it will work on the ground. Can he help us by telling us what measures the department has for monitoring how it works and for reporting back, so that we know how that monitoring has worked out? This is a new thing and something we should very much cheer on, but like most new things I would like to know how it is working and how we can improve it in future.
My Lords, I will make just a short intervention as my noble friend will be leading on this. I have learned recently that some 20 councils have emerging plans or have adopted local plans that are above the impending prescribed national 10% level. That is a big improvement on last year. During the passage of the levelling-up Bill we had quite a long conversation about the role of the national development management plans and did not get to a satisfactory conclusion on whether councils would be able to demand this higher level. We would like to think that they will and could, but there was still a question mark over that. Can the Minister chat to his planning colleagues and clarify that? I am sure that if it were clarified, more councils would want to take that higher standard.
My Lords, I welcome the two statutory instruments before us and the Minister’s helpful introduction. I declare an interest as a Church Commissioner and a member of Peers for the Planet.
Having an accurate register of biodiversity gain is of key importance as we move ahead with the Government’s commitment to nature recovery. There is only one parcel of land and it is increasingly being competed for. We eat from it, grow on it, live on it, move across it, build infrastructure over it, make things on it, extract things from under it, drink water that flows over it, breathe the air above it, sequester carbon in it and generate energy on it. The list goes on and on.
But we share our land with rich flora and fauna—biodiversity that we have seen drastically decline in our own lifetimes. Making space for biodiversity to thrive in an integrated way is part of living more harmoniously with ourselves and with each other on the limited space of our island home but also on this single island planet home of ours, which we share with the whole of creation. Does the Minister agree that when biodiversity thrives, people thrive? To be out in nature, to see nature around us, to smell and touch, to hear and taste nature is good—good for our mental health, good for children’s learning, good for communities to live more contentedly together, good for financial returns and sustainability of business and good for rekindling in us a sense of joyous wonder.
I am interested that the ancient word “covenant” appears a number of times in the statutory instruments before your Lordships. The word reminds us that land is a gift but also of the danger that land can become a temptation, not least to exploit, and we forget what it has been and what it could be. “Covenant” reminds us that we are stewards and that land comes with responsibilities. There is a good biblical precedent in the 10% tithe that in these instruments is the target, though I praise those local authorities and developers that, as the noble Baroness mentioned, have increased that target, because I suspect that a collective greater ambition will be needed to reverse biodiversity decline.
My Lords, I thank the Minister for his introduction to these two SIs and declare my interests as set out in the register. Both instruments are straightforward and in line with the Environment Act requirements for setting up a biodiversity gain site register in which each planning application will, in future, be required to have an entry.
A fee is levied to cover the cost of this register, as the Minister has said. These fees range from £639 for the actual entry down to £45 for recording the habitat enhancement and £89 for an application to have an entry removed. These fees do not seem very large to me, but I am not the person who will be paying them.
There is a penalty fine of £5,000 for providing false information that has been included in the entry in the BNG register. I am unclear whether the original inclusion fee and the penalty fine of £5,000 are paid to the relevant local authority that is responsible for keeping the register; can the Minister please provide clarification? There is also a further penalty charge for non-payment of the original £5,000 fine, which according to the instrument is paid to the consolidation fund. Can the Minister clarify where the responsibility for the consolidation fund lies? Neither the instrument itself nor the Explanatory Memorandum explains this; perhaps it is assumed that everyone knows.
I agree with the comments made by the noble Lord, Lord Deben, on the planning system. I also congratulate the right reverend Prelate the Bishop of Norwich on his thought-provoking contribution. I am reminded of the land use committee I sat on last year, which produced a report about land use across the whole country that the Government, due to a change of Secretary of State, were quite dismissive of.
These SIs are a step in the right direction. There was discussion in the other place on Monday about off-site biodiversity gain, with Minister Pow indicating that the requirement was for a 10% net gain for biodiversity from each eligible grant of planning application. That gain could be delivered through on-site habitat enhancement or creation where possible. Otherwise, it could be delivered through off-site enhancements, purchasing units from the market or, in the last resort, purchasing statutory credits sold by the Government, as the Minister indicated.
My Lords, I thank the Minister for introducing these two instruments, which we very much welcome as they are integral to rolling out the new biodiversity net gain framework and integrating it with the planning system. I intend to discuss them together but, sadly, not as poetically as the right reverend Prelate the Bishop of Norwich did in his comments.
When these regulations were debated in the other place, a number of concerns were raised about how the new framework would operate in practice; the noble Lord, Lord Deben, talked about this as well. These included concerns regarding local planning authorities. Some of the questions raised were not completely addressed, so I will come back to some of these; I also have a few other questions.
The noble Baroness, Lady Bakewell of Hardington Mandeville, talked about ecology officers. One thing that was raised by my colleague in the other place, Barry Gardiner MP, was a statistic that only a third of local authorities have an ecological officer. This was not addressed by the Minister in her response in the other place, so can the Minister confirm whether this is the case? If it is correct, how will the Government address the shortfall and support local authorities? If the Minister is unaware of it, he could write to me as it would be interesting to know whether that figure is correct.
I looked at the Government’s impact assessment on biodiversity net gain and local nature recovery strategies, and it says:
“Normal enforcement procedures at the local authority level, along with transparent site planning documents and habitat management plans, will provide some confidence that on-site habitat delivery will be faithfully carried out”.
It also states:
“We continue to work with local authorities and our agencies to quantify any additional costs to deliver biodiversity net gain, in addition to professional organisations to make sure there is access to the right training, ecological expertise and systems required”.
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Looking at the SI that deals with the financial penalties, which the Minister mentioned in his introduction, we have heard that the maximum fine that can be imposed by the register operator if an applicant is suspected of providing false or misleading information when registering land is £5,000. It would be interesting to know how this sum was arrived at, and whether it is deemed an appropriate disincentive.
I draw attention the Explanatory Memorandum to the SI on site registration fees. Paragraph 7.5 states:
“Someone might attempt to secure the registration of land by providing false or misleading information, or to have false or misleading information about the nature or extent of habitat enhancements required on the land recorded in the register, so as to make a financial gain from selling fake habitat enhancements to developers”.
Will a threat of a £5,000 fine really stop this happening? I do not know whether anything else could be done if it were seen to be the case.
Finally, I very much support the comments of the noble Lord, Lord Deben, regarding our planning system and how we deliver net zero. That was a very important point to make.
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I turn first to the Biodiversity Gain Site Register (Financial Penalties and Fees) Regulations 2024. The Environment Act 2021 gives the Secretary of State for the Environment, Food and Rural Affairs the power to make provision for a register of biodiversity gain sites. The core purpose of this publicly available register is to record allocations of off-site biodiversity gains to developments. The register will be established by the Biodiversity Gain Site Register Regulations 2024.
This instrument makes provision for the imposition of a financial penalty and the payment of fees relating to applications to that register. This instrument provides for imposing financial penalties to help ensure that the biodiversity gain site register contains accurate information. The provision for financial penalties will encourage compliance, deter individuals from submitting incorrect information and remove illicit financial benefit—for example, through cost avoidance.
This instrument also provides for fees to be charged for different applications to the register. These applications include gain site registration, amendment applications and applications for the allocation of habitat enhancements to development. The fees have been set to achieve cost recovery for the set-up and ongoing maintenance of the register. Developers are not obliged to use the biodiversity net gain register and should first aim to achieve biodiversity gains on site before turning to off-site gains. Landowners who choose to supply off-site gains to developers must apply to register their land. We expect that they will do so only if the benefits from selling units outweigh the costs. Without these regulations setting the requirement for fees to be paid and the amount to be paid, the register would not achieve cost recovery and there would be a significant cost to the Government.
I now turn to the Biodiversity Gain (Town and Country Planning) (Consequential Amendments) Regulations 2024, which have been ably drafted by the Department for Levelling Up, Housing and Communities. The Environment Act 2021 amended the Town and Country Planning Act 1990 to make provision for biodiversity net gain in the planning system. The Act specifically adds a new Schedule 7A, which sets out the statutory basis for the 10% biodiversity gain objective, the metric and the general biodiversity gain condition which will apply to those planning permissions. It also made consequential changes to other parts of the Town and Country Planning Act.
These regulations will make further consequential changes. First, they provide rules within Schedule 7A for determining the local planning authority which is responsible for the approval of a biodiversity gain plan required under the general biodiversity gain condition. Secondly, they further amend Section 73 of the Town and Country Planning Act, which enables the variation of conditions of previous planning permission to cover the circumstances when an earlier biodiversity gain plan is to be regarded as approved where the development’s on-site habitat is irreplaceable habitat. Finally, they make amendments to Section 78 of the Town and Country Planning Act for the purpose of appeals about determinations by planning authorities in respect of the biodiversity gain plan. These are technical amendments to ensure the provisions for biodiversity net gain in the Town and Country Planning Act work.
In conclusion, let me emphasise that the regulations are essential to the successful delivery of the new mandatory net gain requirement, which will help to deliver much-needed gains for nature. Once the regulations are approved by both Houses, we will lay the rest of the biodiversity net gain regulations, which we have published in draft. I commend these draft instruments to the House.
What I would really like to see as a result of this secondary legislation is for all involved in land to begin to take a real pride in enhancing biodiversity, halting and reversing the decline in species abundance, reducing extinctions and restoring and creating wildlife-rich habitats. Does the Minister agree that this should become a badge of honour, something that every development strives for, enhancing developers’ brand and reputation and, more than that, doing it because it is the right thing for us all to do?
We must leave our natural world in a better state than we have inherited it and how we have allowed it to decline under our stewardship. I thank the Minister and all the officials involved in bringing these statutory instruments before your Lordships.
I would like the Minister’s reassurance that both local authorities and the Government will stress that on-site habitat enhancement and creation are always preferable, especially for the benefit of local residents and businesses. Once enhancements are off-site or are in the form of purchased credits, there is a loss of ownership that could lead to complacency about the value of the register and the scheme. Can the Minister say whether the Government are considering keeping a second register alongside the first, which records specifically whether the biodiversity gain is off-site or in the form of a purchased unit from the market or the Government? Such a register would increase both transparency for the public and accountability for the development or business concerned.
I turn now to the second instrument, the Biodiversity Gain (Town and Country Planning) (Consequential Amendments) Regulations 2024. The EM indicates that not every planning application will be eligible for a biodiversity gain plan because the gain might be less than 10%. Can the Minister give an example of what kind of land or development this might be? At the other end of the spectrum is the loss of “irreplaceable habitat”, but the EM does not indicate that planning approval will not be granted where this is the case, only that development of on-site habitat should minimise the effect of the loss of irreplaceable habitat. I am extremely concerned that it should appear to be acceptable that irreplaceable habitat would be lost. This is hardly likely to help the country meet its biodiversity targets.
Lastly, I raise the issue of the availability of local authority ecology officers. As everyone is aware, local authority budgets are under extreme pressure, not least due to social care issues. Approximately 30% of local authorities employ an ecology officer, which leaves 70% with officers who do not have the skills to accurately assess what constitutes a biodiversity gain and what does not. Perhaps the Government think that the fees for the entry on the register and the fines for inaccurate information will help local authorities to train up their current workforce in ecology matters or to buy such services in. It would be much better to have a properly trained and experienced workforce in place from the start of this register, to ensure its success. Nevertheless, I am supportive of these two SIs and look forward to the Minister’s comments.
It has been mentioned that local authorities are under a certain amount of financial pressure, so it would be helpful if the Minister could outline how the Government see all this working in that context and whether that figure about the lack of ecological officers is correct.
The noble Baroness, Lady Bakewell, also mentioned off-site enhancement, and there was another question that did not have a full answer in the Commons debate regarding off-site provision. This was in the event that a development in one local authority area opts to achieve off-site gain on land that falls within another local authority area. It would be very helpful if the Minister could confirm which authority is responsible for the monitoring and enforcement if this happens. These SIs deal with the split between different levels of local authority—county or borough, for example—but do not seem to address the geographical issues that might arise.
According to the impact assessment that I mentioned earlier, the total funding for biodiversity net gain is expected to be less than £200 million per year. Can the Minister comment or shed any light on why this figure is so low? In addition to biodiversity net gain, the Government also have a target to halt the decline in species abundance by 2030. Given that we are talking about increasing biodiversity from current levels, can the Minister provide any update on the current level of species abundance? What is the baseline assessment being used?
In his introduction, the Minister mentioned the appeals process. The SI deals with the time limits that apply for appeals procedures should a local authority decline, or otherwise fail to approve, a biodiversity gain plan. What are the anticipated costs for local authorities, or the potential for developers to submit sub-par plans knowing that they can then go to court? I ask this because, in the past, some developers have cited viability as a means of avoiding Section 106 or community infrastructure levy contributions and have occasionally threatened to go to appeal if officers recommend refusing an application. This is to ensure that we do not have those sorts of issues arising in this case.