A government plan for housing and infrastructure development that supports nature recovery

1 Exploring a new nature recovery framework
2 Stated challenges with the current system
3 The objectives of a new approach
4 The proposed legislative changes
5 Key features of the new system
6 Nature recovery as a central goal
7 Benefits of the proposed approach
8 Impact on Biodiversity Net Gain
9 Conclusion and next steps
10 Related articles on Designing Buildings
11 External links

[edit] Exploring a new nature recovery framework

On 15 December 2024, it was confirmed that the UK government is exploring a new framework to integrate housing and infrastructure development with nature recovery. This aims to meet environmental obligations while fostering economic growth.

The approach focusses on leveraging development funding to drive large-scale, impactful environmental improvements that surpass the current system's limited, project-specific outcomes. The new model is described as 'Unlocking this win-win outcome for the economy and for nature must start with addressing pollution and environmental harm at source.'

The proposals are part of the government’s broader commitment to address the housing crisis, deliver major infrastructure, and achieve ambitious environmental goals, such as halting biodiversity loss by 2030 and meeting Environment Act commitments.

[edit] Stated challenges with the current system

The government says it acknowledges that existing frameworks often hinder housing and infrastructure development without delivering significant benefits for nature, with environmental obligations, like the Habitat Regulations, frequently delaying or increasing the costs of projects. It makes the case that the piecemeal, project-specific approach to mitigating environmental impacts is inefficient and struggles to deliver the strategic, large-scale interventions required to reverse ecological degradation.

For example, nutrient pollution regulations and other site-specific requirements often add complications for developers, yet fail to address underlying environmental issues effectively. It is a fragmented process that not only stalls development but also limits the overall benefits for nature recovery.

[edit] The objectives of a new approach

The government envisions a more efficient system that will simultaneously address housing and infrastructure needs while delivering meaningful environmental outcomes.

The key objectives of the governments proposed reforms include:

Improving outcomes for Nature: Transitioning from merely offsetting environmental harm to proactively contributing to ecological restoration and creating habitats that bolster biodiversity.
Streamlining the processes: Simplifying the way developers meet environmental obligations, reducing duplication, and ensuring funds are used strategically for maximum impact.
Enhancing efficiency: Pooling resources from multiple developments to fund large-scale environmental improvements rather than disjointed, localised measures.
Legal certainty for developers: Providing a transparent and predictable framework that supports significant private sector investment while meeting environmental goals.
Empowering delivery partners: Enabling organisations with expertise to take charge of implementing targeted actions for nature recovery.
Monitoring progress: Establishing clear mechanisms to measure the success of environmental interventions.
Leaving a lasting legacy: Creating sustainable green spaces that improve public health, enhance community access to nature, and contribute to climate resilience.

[edit] The proposed legislative changes

The proposed changes are effectively two fold;

Firstly, reforming environmental legislation through the forthcoming Planning and Infrastructure Bill, including targeted amendments to laws like the Habitats Regulations and the Wildlife and Countryside Act.
Secondly, the environmental outcomes reports framework, which would replace existing environmental assessment systems with a more outcome-driven tool to manage the impact of development on the natural world.

[edit] Key features of the new system

Strategic assessments would shift from project-specific environmental assessments to strategic delivery plans, addressing environmental impacts collectively over larger geographic areas, for better resource use, and greater ecological benefits.

State responsibility for implementation transfers the responsibility for planning and strategic implementation to government agencies or expert organisations, with the flexibility to design and execute interventions that maximise benefits for nature.

Developers would make payments to fund strategic environmental actions, allowing projects to proceed more quickly, and enabling development to support large-scale nature recovery without focussing on fragmented assessments.

[edit] Nature recovery as a central goal

The government say that a core element of the proposals is to address environmental harm at its source, with plans to take stronger regulatory actions to improve underlying environmental conditions, such as cleaning waterways, planting trees, reducing pollution, and restoring habitats. These upstream measures would then complement the new strategic approach to development, providing the "environmental headroom" necessary to support sustainable growth.

A rapid review of the environmental improvement plan will guide these effort, incorporating feedback from a broad range of stakeholders, including nature conservation groups, local governments, and businesses, to ensure ambitious yet practical targets for reversing biodiversity decline and enhancing natural habitats.

[edit] Benefits of the proposed approach

Reconciling the need for rapid development with the urgency of nature recovery through reform would be seen as:

Accelerating housing and infrastructure development by removing unnecessary delays in the planning process, to achieve the government goal of building 1.5 million homes and delivering an infrastructure for clean power.
Creating strategic environmental gains through coordinated, large-scale interventions providing meaningful improvements to biodiversity and ecosystem health, going beyond piecemeal solutions of the current system.
Economic Growth via a streamlined process reducing costs for developers and creating a more predictable investment environment, driving economic benefits while contributing to nature recovery.
Public health and climate resilience, through expanded green spaces with restored ecosystems to enhance community well-being, improve air and water quality, and bolster resilience against climate change.

[edit] Impact on Biodiversity Net Gain

Biodiversity Net Gain (BNG) became mandatory for major of minor developments in 2024, with Nationally Significant Infrastructure Projects planned from 2025. Minor residential developments being defined as one to nine dwellings, inclusive, on a site having an area of less than one hectare, or, where the number is not known, a site area of less than 0.5 hectares. For non-residential, where the floor space to be created is less than 1,000 square metres or where the site area is less than one hectare. Developments that exceed this, so 10 dwellings or more, are defined as major developments, with these exemptions; development impacting a habitat area below 25 m2 or 5m for linear habitats such as hedgerows, householder planning applications, and small scale self-build custom buildings.

It is based on the statutory biodiversity metric of biodiversity units (area, hedgerow, and watercourse units) that need to be calculated prior to a development taking place, along with how many units are needed to replace units of habitat lost through the development. Developers need to achieve a 10% BNG through the creation or enhancement of habitats to be evidenced via a biodiversity gain plan, which can be submitted to the local planning authority after the planning application has been approved, on the basis of a mitigation hierarchy. Assessment needing to be carried out by a professional ecologist, in line with any Local Nature Recovery Strategy (LNRS), with biodiversity improvements recorded in a publicly available biodiversity gain site register.

BNG was introduced under the previous government and in May 2024 the National Audit office (NAO) highlighted and number of criticisms of the scheme including the risks to the long-term effectiveness of the biodiversity net gain scheme. ther current Labour government plans for housing and infrastructure development that supports nature recover are currently being described as not impacting the running of the BNG. In their announcement the government said:

"These proposals are not expected to have any substantive impact on the implementation of mandatory Biodiversity Net Gain (BNG), which is a widely applicable planning obligation in England. BNG incentivises nature positive choices on development sites, with a developing private marketplace for off-site biodiversity units which the government continues to fully support. This means that where a developer engages with the Nature Restoration Fund to address a specific environmental impact, the biodiversity gain requirement will continue to apply. This ensures developments are incentivised to reduce their biodiversity impact on site and secure future residents’ and / or local people’s access to nature. As we continue to develop this model, we will seek to identify opportunities to support the ongoing roll out and implementation of BNG." (paragraph 27 Planning reform working paper)

[edit] Conclusion and next steps

The government says its proposed approach represents a significant shift in how housing and infrastructure development intersects with environmental obligations. By focusing on strategic, large-scale interventions funded by development, aiming to transform the current system into one that supports rapid growth while delivering substantial gains for nature recovery. It believes that if implemented, these changes could create a legacy of sustainable development that benefits both the economy and the environment.

The government has outlined its proposals for reform in a consultation paper, inviting feedback from stakeholders to refine the plans. It says the feedback will help determine whether the proposals are adopted and how they can be fine-tuned to balance development needs with the urgent requirement for ecological restoration, via a series of specific questions:

Do you consider this approach would be likely to provide tangible improvements to the developer experience while supporting nature recovery?
Which environmental obligations do you feel are most suited to this proposed model, and at what geographic scale?
How if at all could the process of developing a Delivery Plan be improved to ensure confidence that they will deliver the necessary outcomes for nature?
Are there any additional specific safeguards you would want to see to ensure environmental protections and / or a streamlined developer experience?
Do you support a continued role for third parties such as habitat banks and land managers in supplying nature services as part of Delivery Plans?
How could we use new tools like Environmental Outcomes Reports to support this model?
Are there any other matters that you think we should be aware of if these proposals were to be taken forward, in particular to ensure they provide benefits for development and the environment as early as possible?