Toby Perkins: ‘Biodiversity net gain should be strengthened not scrapped’

As shadow nature minister at the time of last year’s general election, I was proud to be part of the Labour team that pledged to build 1.5 million new homes and to restore and protect the natural world.

Now that we have a Labour government, I have taken on the role of Chair of the Environmental Audit Committee from where I am dedicated to ensuring that Labour delivers on the important housing and environmental targets that we committed to when we were in opposition.

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Our government has inherited a difficult legacy of mounting housing waiting lists, unacceptable homelessness, and one of the most nature-depleted countries on earth. However, through the introduction of ‘biodiversity net gain’, the previous government did at least unearth one approach that was genuinely innovative and internationally admired.

Solving the housing crisis and improving the natural environment at the same time can, and must, be done hand-in-hand, as this Labour Government has recognised.

Biodiversity net gain, which requires developers to leave nature in a better state than they found it, should be a key contributor to the delivery of that ambitious plan.

The Environmental Audit Committee was pleased to hear the Nature Minister, Mary Creagh, recently express her support for the policy. But further consultation on whether to exempt small sites from biodiversity net gain is causing concern amongst nature charities and NGOs.

Ministers are right to look again at the implementation of biodiversity net gain – but I would argue that any changes must reinforce the policy and contribute to Labour’s housing and nature goals, not undermine them.

Done well, mandatory biodiversity net gain will mean that when development goes ahead, local habitats are also created and enhanced, with benefits for local communities. Where local nature enhancement is not possible, developers can buy offsite biodiversity credits instead, contributing to nature restoration at a larger scale.

Alongside incentivising and promoting more nature-friendly development, biodiversity net gain has catalysed a new market for nature restoration. By 2030, up to £200 million annually in private investment in nature recovery could be unlocked through this market.

Developers have also repeatedly expressed support for biodiversity net gain, as they look for opportunities to add value in a meaningful way.

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Currently, the vast majority of developments that are subject to biodiversity net gain are considered ‘small sites’, which contain under 10 dwellings. One of the consultation proposals currently being reviewed by Ministers is to exempt small sites from mandatory biodiversity net gain, meaning that well over 70% of all housing developments would not have to compensate for harm to nature.

A decision to exempt small sites from biodiversity net gain entirely might not make a big difference to housing numbers, but it is in danger of compromising this important nature policy – and the nascent nature market. At worst, removing the requirement for small sites development to contribute positively to nature’s recovery could jeopardise the achievement of legally-binding environmental targets.

Instead, I am arguing that our party should seize the opportunity through this consultation to support biodiversity net gain, reforming net gain for small sites instead of scrapping it, and looking at other ways to improve the policy, such as increasing transparency and enforcement.

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As the Secretary of State of Housing, Communities and Local Government has repeatedly said, accelerating housebuilding can be a ‘win-win’ for development and nature. With some sensible tweaks, biodiversity net gain will help deliver nature-friendly development for decades to come.

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