Biodiversity net gain offsetting - monitoring and reporting body contribution

The Environment Act 2021 mandates 10% biodiversity net gain for all major planning applications (with some exemptions) and will mandate the same for minor planning applications from 2 April 2024. For exemptions and further details on information requirements, please see local requirements - biodiversity/geodiversity survey and report.

Where possible developments should provide the mandatory 10% biodiversity net gain on site however, in many cases this will not be achievable and some degree of offsetting will be required.

In order to cover the additional costs to the Local Planning Authority (LPA) of mandatory monitoring and reporting of Biodiversity Net Gain on sites outside of the main development site, developers will be required to make a financial contribution to the LPA. This contribution will be required when:

• offsetting is to be carried out on land under the control of the developer either through ownership, long-term lease or other similar agreement; or
• where the developer is using a third-party offsetting provider such as a commercial habitat bank.

Why is the contribution required?

The monitoring and reporting body contribution is required to cover costs to the LPA of reviewing monitoring reports and managing data for offsetting locations relating to planning consents. It will also help the LPA cover the cost of mandatory reporting to government on progress of offsetting habitat works relating to development permitted by the LPA. The fee will also contribute to LPA costs arising from scrutiny of monitoring reports and of implementation and progress of habitat offsetting. It will also be used to support the enforcement of offsetting agreed through Section 106 or Conservation Covenants.

How much is the contribution?

For applications where offsite offsetting of up to 10 Biodiversity Units is required a contribution of £2,500 will be required.

For applications where offsite offsetting of more than 10 Biodiversity Units is required a contribution of £5,000 will be required.

Exemptions

As detailed in government guidance on biodiversity net gain the following types of development are exempt from mandatory biodiversity net gain:

• development resulting in a loss of less than 25m² of vegetation or less than 5m of a linear feature;
• householder applications;
• applications for design and build developments.

Payment

The most appropriate way to pay the monitoring and reporting body contribution is through a Section 106 agreement. Section 106 agreements are required to secure offsite offsetting of Biodiversity Units. These agreements will identify the location of the offsetting site and agree the implementation of a Management and Monitoring Plan.