Home / Sources / National Audit Office / Implementing statutory biodiversity net gain
Source · National Audit Office

Implementing statutory biodiversity net gain

There are risks to the long-term effectiveness of a new policy to make sure developers protect or improve biodiversity

Published: 17 May 2024 Recommendations: 10 Type: Value for Money NAO confirmed: 8 Department: Department for Environment, Food & Rural Affairs
Dept: Department for Environment, Food & Rural Affairs Topics: Energy and environmentEnvironmental sustainabilityPollution and environmental qualityRural and countryside nao.org.uk →

Recommendations

10 items
10 accepted 7 implemented 3 in progress

Recommendation 1

Addressee: Department for Environment, Food and Rural Affairs · Source location: Page 13, para 22, bullet 1

On managing risks as statutory BNG embeds as business as usual, Defra should: establish arrangements to understand and respond to system-wide risks and opportunities;

Response position: Accepted

Delivery: In progress · Q4 2026-27 · Confirmed by NAO

Recommendation 2

Addressee: Department for Environment, Food and Rural Affairs · Source location: Page 13, para 22, bullet 2

ensure it retains sufficient capacity and capability to deal with any challenges requiring central government leadership or response;

Response position: Accepted

Delivery: Implemented · Q4 2024-25 · Confirmed by NAO

Recommendation 3

Addressee: Department for Environment, Food and Rural Affairs · Source location: Page 13, para 22, bullet 3

monitor the extent to which the private market for biodiversity units is growing at the pace and scale it needs to in order to provide developers with the range of habitat types they require;

Response position: Accepted

Delivery: Implemented · Q1 2024-25 · Confirmed by NAO

Recommendation 4

Addressee: Department for Environment, Food and Rural Affairs · Source location: Page 13, para 22, bullet 4

establish a mechanism for spending income from the sales of statutory biodiversity credits in a timely way that fulfils the government?s role as biodiversity provider of last resort; and

Response position: Accepted

Delivery: Implemented · Q4 2025-26 · Confirmed by NAO

Recommendation 5

Addressee: Department for Environment, Food and Rural Affairs · Source location: Page 13, para 22, bullet 5

determine how it will monitor the effectiveness of compliance and enforcement by local authorities and responsible bodies, to give Defra adequate assurance that these organisations are complying with their statutory BNG obligations.

Response position: Accepted

Delivery: Implemented · Q2 2026-27

Recommendation 6

Addressee: Department for Environment, Food and Rural Affairs · Source location: Page 13, para 23, bullet 1

On facilitating local delivery, Defra should: ensure local authorities have sufficient and timely funding certainty to allow longer-term planning;

Response position: Accepted

Delivery: Implemented · Q4 2025-26 · Confirmed by NAO

Recommendation 7

Addressee: Department for Environment, Food and Rural Affairs · Source location: Page 13, para 23, bullet 2

use monitoring information on the biodiversity units market to identify any differential regional impacts of the policy, such as local authorities less engaged with the policy, and target support to them; and

Response position: Accepted

Delivery: Implemented · Q2 2026-27

Recommendation 8

Addressee: Department for Environment, Food and Rural Affairs · Source location: Page 13, para 23, bullet 3

be proactive in co-ordinating opportunities for best practice to be shared and adopted quickly, particularly among local authorities.

Response position: Accepted

Delivery: Implemented · Q1 2024-25 · Confirmed by NAO

Recommendation 9

Addressee: Department for Environment, Food and Rural Affairs · Source location: Page 13, para 24, bullet 1

On determining impact, Defra, working with Natural England, should: publish information annually ? for example, within Defra?s annual progress reports on the Environmental Improvement Plan ? on what statutory BNG has delivered so far towards the stated policy objectives, outcomes and benefits; and

Response position: Accepted

Delivery: In progress · Q1 2027-28 · Confirmed by NAO

Recommendation 10

Addressee: Department for Environment, Food and Rural Affairs · Source location: Page 13, para 24, bullet 2

identify the contribution that they expect statutory BNG to make to national
biodiversity targets, and how they will measure the progress statutory BNG
makes to these objectives.

Response position: Accepted

Delivery: In progress · Q1 2027-28 · Confirmed by NAO