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More than two dozen organisations write to the government urging it to 'stay the course' with fledgling policy
More than two dozen businesses and environmental groups have urged the government to "stay the course" with the UK's fledgling Biodiversity Net Gain (BNG) regime, which they argue could become "the cornerstone of a thriving economy" if given time to flourish.
In a joint letter to the Prime Minister Keir Starmer signed by leading figures from 27 organisations, the group argues that "weakening BNG would come at a high cost, setting back this fast-developing economy and more widely threatening business confidence in nature policy".
"Although BNG is not yet perfect, it is a solid foundation on which to build a strengthening and improving market that delivers for nature, business, and communities alike," the letter adds.
First introduced in 2024, the BNG scheme requires developers to deliver a 10 per cent improvement in biodiversity on site or, failing that, through investments in offsite improvements or nature projects elsewhere. Developers can comply with the rules by purchasing biodiversity credits from approved nature projects, providing a valuable revenue stream for nature restoration projects.
However, back in May the government consulted on proposed reforms to the BNG regime aimed at introducing a more streamlined process for council planning committee decisions and speeding up development of smaller housing projects in England. The proposed changes would also exempt small and medium-sized developments from the BNG rules, with the government arguing the "current system makes it far too difficult for smaller builders to get spades in the ground".
Critics argued the proposals would create significant loopholes that would undermine the scheme and reduce its ability to fund nature recovery projects across the UK.
Today's letter, which has been spearheaded by the Wildlife Trusts, warns against changing the "world leading policy" arguing it is critical for unlocking win-wins for both nature and development.
"As the UK faces urgent environmental and economic challenges, there is a unique opportunity to lead by example," it states. "Weakening BNG at this pivotal moment would be a step backwards, particularly as the government seeks to expand private investment in nature recovery, as highlighted in its recent call for evidence."
The letter has been co-signed by businesses including Knight Frank, Schroders Wealth Management and Triodos Bank, in addition to scores of leading figures from environmental groups such as the RSPB, National Trust, Forum for the Future, and the Wildlife and Countryside Link.
It argues relaxing the BNG rules as proposed by the government risks creating "significant uncertainty in a nascent market that depends on long-term commitments and private investment".
It claims that "businesses understand the need to invest in nature" and "recognise that restoring biodiversity is essential not only for environmental reasons, but also for economic stability and resilience", adding that the present BNG rules provide businesses with an effective mechanism for mobilising such investments.
"A new green market is growing, creating jobs and upping investment in rural and coastal areas, furthering the government's growth mission," it states, adding that "the burgeoning marketplace is starting to show its full value".
"We urge the government to stay the course, strengthen implementation, and build on this policy's early success," it says. "With the right support and direction, BNG can be a cornerstone of a thriving nature economy - and a lasting legacy of environmental leadership."
The letter comes hot on the heels of fresh analysis earlier this week of 33 habitat bank operators, which sell biodiversity credits through the BNG regime, predicting the scheme could be on course to create a thriving £3bn market by 2035.
The Department for Environment, Food and Rural Affairs (Defra) has previously argued sweeping planning reforms are required to deliver new housing projects and remove red tape for developers. Meanwhile, the government is also pursuing plans for a national Nature Restoration Fund through its Planning and Infrastructure Bill, which critics have warned could overlap with the existing BNG regime.
In response to today's letter, Defra said in a statement that it was "fully committed to Biodiversity Net Gain" and argued its ongoing consultation "explores easier, quicker, and cheaper routes to deliver gains for both developers and nature".
"We are also consulting on how BNG should be applied to Nationally Significant Infrastructure Projects, to provide a clear framework that ensures major new developments deliver for nature and contribute to our legally binding targets," it added.
