Development and the Environment

Monday 16th December 2024 Written Statements

[The Minister for Housing and Planning (Matthew Pennycook)]

The Government are determined to rebuild Britain, delivering on our hugely ambitious “plan for change” milestones of building 1.5 million safe and decent homes and fast-tracking 150 planning decisions on major infrastructure by the end of this Parliament. At the same time, we are committed to supporting nature recovery and delivering on the Environment Act 2021.

When it comes to development and the environment, we know we can do better than the status quo, which too often sees both sustainable house-building and nature recovery stall. Instead of environmental protections being seen as a barrier to growth, we want to unlock a win-win for the economy and for nature.

In the King’s Speech, we set out our intention to use development to fund nature recovery, delivering necessary changes through legislation where we can confirm to Parliament that the steps we are taking will deliver positive environmental outcomes.

With a view to progressing policy development in advance of the publication of the Planning and Infrastructure Bill next year, the Government have published a working paper inviting views on a proposed new approach to accelerate housing and infrastructure development while going beyond offsetting harm to drive forward nature recovery.

In developing this working paper, the Government have engaged constructively with representatives of the development industry, nature conservation organisations, nature service providers, and local government. The approach proposed has benefited considerably from the valuable feedback received, and we intend to continue to work closely with key stakeholders as we continue to refine our thinking in this area.

That the status quo is producing sub-optimal outcomes is not in dispute. There is widespread consensus that it is deterring planning applications and hindering the pace at which development can be delivered, while at the same time failing to maximise benefits for nature.

The challenges relating to nutrient neutrality are a case in point. An estimated 8% of new housing supply —equating to approximately 16,500 dwellings per year, based on recent housing output levels—has historically been delivered in sensitive river catchments subject to nutrient neutrality requirements flowing from the Conservation of Habitats and Species Regulations 2017. There is widespread evidence that such requirements are unnecessarily deterring planning applications and hindering the pace at which homes and infrastructure in these catchment areas can be delivered. The current arrangement requires costly site-by-site mitigation for each new development, and even where mitigation measures are available, obligations currently have to be assessed and secured on a project-by-project basis that often fails to secure optimal environmental outcomes.

Alongside taking robust regulatory and policy action to address pollution and environmental harm at source, the Government therefore want to take a more strategic approach to enable development to proceed where it is needed, while delivering more effectively for nature.

Such an approach would entail moving responsibility for identifying actions to address the environmental impacts of development away from multiple, project-specific assessments in an area and toward a single strategic assessment and delivery plan implemented at the right spatial scale. Without reducing the level of environmental protection provided for in existing law, we believe this approach, if taken forward, would provide a more efficient and effective way to deliver on the outcomes that the habitats regulations and other environmental obligations aspire to achieve.

In adopting this more strategic approach, which will enable the delivery of tens of thousands of new homes alongside new infrastructure, we are seeking to:

take a holistic view of nature recovery to secure better environmental outcomes, in line with our Environment Act targets;

go beyond offsetting environmental impacts and instead use development to drive nature recovery;

drive efficiency and reduce duplication of effort to ensure every pound spent is helping to deliver our environmental goals;

make it far easier for developers to discharge a range of environmental obligations, with the legal certainty necessary to underpin substantial capital investment;

give delivery partners the tools they need to generate positive outcomes for nature, empowering them to make the right choices to deliver nature recovery;

establish a robust and transparent framework to monitor delivery of environmental outcomes; and

create a lasting legacy of environmental improvement that will promote better public health through increased access to high quality green spaces.

We want to meet these objectives by taking three steps, for which the Planning and Infrastructure Bill would provide the necessary legislative underpinning:

Moving responsibility for identifying actions to address environmental impacts away from multiple project-specific assessments in an area to a single strategic assessment and delivery plan. This will allow action to address environmental impacts from development to be taken strategically, at an appropriate geographic scale, rather than at the level of an individual project—while recognising the importance of protecting local communities’ access to nature and green space.

Moving more responsibility for planning and implementing these strategic actions on to the state, delivered through organisations with the right expertise and with the necessary flexibility to take actions that most effectively deliver positive outcomes for nature.

In turn, allowing impacts to be dealt with strategically in exchange for a financial payment that helps fund strategic actions, so development can proceed more quickly. Project-level environmental assessments are then limited only to those harms not dealt with strategically.

In due course, our proposed approach would be supported by the new framework of environmental outcomes reports that will replace the current systems of environmental assessment with a more effective and outcome-focused tool for managing the effects of development on the natural environment.

As we seek to refine our new approach, we recognise the importance of continuing to deliver nutrient mitigation schemes, including via the local nutrient mitigation fund and Natural England’s nutrient mitigation scheme. In this vein, we also intend to continue to support the delivery of strategic measures such as district-level licensing and suitable alternative natural green spaces, as well providing ongoing support for local authorities through the Planning Advisory Service.

Shifting to a strategic and more outcomes-focused approach to impact assessment and nature recovery has the potential to support the environment, as well as helping us deliver the housing and infrastructure we need, unlocking a win-win for the economy and nature. We look forward to receiving views on the options set out in the working paper.

[HCWS317]