30 Accepted

Statutory biodiversity net gain (BNG) is an existing scheme requiring that developers’ planning applications avoid...

Recommendation
Statutory biodiversity net gain (BNG) is an existing scheme requiring that developers’ planning applications avoid harm to biodiversity as much as possible and more than offset any harms with biodiversity improvements. In this way, BNG has a similar overall objective to that of the Nature Restoration Fund. Defra has overall responsibility for statutory BNG, and Natural England delivered and administered aspects of it on Defra’s behalf.82 Defra prioritised a quick launch of BNG, but has not achieved take-up targets for local authorities, who are the core delivery partners for the policy alongside Natural England.83 78 C&AG’s Report, paras 4.5 and 4.8 79 Q 78 80 Correspondence from Natural England, 13 February 2026 81 Q 78 82 C&AG’s Report, Implementing statutory biodiversity net gain, HC 729, 22 May 2024, para 6 83 C&AG’s Report, Implementing statutory biodiversity net gain, HC 729, 22 May 2024, paras 12 and 16-18 19
Government Response Summary
The government accepts the recommendation, stating it has run a full lessons-learned exercise following BNG's delivery. The insights from this exercise have informed the implementation approach for the Nature Restoration Fund, with teams continuing to work closely to ensure alignment between the two programmes.
Government Response
Accepted
HM Government Accepted
6.5 The government agrees with the Committee’s recommendation. Recommendation implemented 6.6 Biodiversity Net Gain (BNG) and Nature Restoration Fund (NRF) are distinct and complementary policies, both aiming to ensure that development delivers a net benefit for nature. The NRF is predominantly optional and will focus on enabling development in areas where it has stalled due to specific environmental obligations. For example, nutrient neutrality currently affects 8% of housing. BNG currently applies to all new housing (including exemptions) and is scheduled to go live for Nationally Significant Infrastructure Projects from November 2026. 6.7 Following the delivery of BNG, Defra ran a full lessons-learned exercise. The learning from this informed the approach to delivering the NRF set out in the NRF Implementation Plan. Teams working on NRF and BNG continue to work closely together to ensure information on delivery is shared and the two programmes remain aligned.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.3 yrs
Report published 25 Mar 2026