Biodiversity Gain Site Register (Financial Penalties and Fees) Regulations 2024

Baroness Hayman of Ullock Excerpts

Wednesday 10th January 2024 Lords Chamber

[Baroness Bakewell of Hardington Mandeville (LD)]

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.

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.

[Baroness Hayman of Ullock (Lab)]

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”.


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.