A scheme that requires developers to boost nature has delivered just a fraction of the expected new habitat in its first year, campaigners say.

Richard Broadbent, Environmental lawyer at Freeths, says:

“Defra investigated these concerns last year and said in a blog in November 2024: “We have heard some concerns about the number of applications receiving planning permission that are exempt from BNG. We are collecting more data on the details, but early indications are that the system is working as intended”. We would urge Defra, however, to make sure that they do keep collecting data and monitor the situation to ensure that the system is working as intended.

“Part of the reason why so few habitat banks have been recorded on Natural England’s public register is because of capacity delays within local authorities processing the section 106 planning obligations necessary to secure those habitat banks. It is likely that we would see more supply much quicker if local authorities were given the resources they need to process requests for planning obligations.

“The alternative is for habitat banks to be secured with responsible bodies designated by the Secretary of State using conservation covenants. Freeths is proud that we helped our clients RSK Wilding to create the first conservation covenants to secure habitat banks. This alternative to local authority section 106 planning obligations is really starting to speed up the registration process for new habitat banks.”

Penny Simpson, Environmental law partner at Freeths, added:

"It's far too soon to be calling the new BNG system a failure or a success – it is unrealistic in one year for a complex regime which involves many players to be off the ground and running perfectly – it can be expected to take 5 years at least to get this system working – everyone should wait and see."