16 December 2025
The Government has announced a new exemption to England’s Biodiversity Net Gain (BNG) rules, excluding developments under 0.2 hectares from the policy. While this is less damaging than earlier proposals to exempt all sites under 1 hectare, Wildlife and Countryside Link (WCL) warns the move still risks hollowing-out one of the most important nature protection policies in a generation.
BNG, introduced in February 2024 under the Environment Act, requires most new developments to leave nature in a measurably better state, delivering at least a 10% biodiversity uplift. It is currently the only fully functioning nature compliance market in England and has already attracted over £320 million of private investment into habitat creation and restoration.
Under the Government’s original consultation proposal to exempt sites under 1 hectare, an estimated 97,000 planning applications would have been excluded from BNG, leaving just 20,000ha of development land subject to the policy (a bit smaller than the size of Birmingham). Campaigning by environmental groups, business and experts has helped shift ministers away from that position.
If Government closes loopholes, then around 17,000 applications would be subject to BNG with exemptions for sites under 0.2ha, compared to just 3,000 under the initial plan. This would mean that approximately 40,000ha of development land would remain within BNG – roughly double the size implied by the original 1ha proposal.
Despite this improvement, WCL warns that exempting so many small sites could still “wreck the policy altogether”, particularly when small developments dominate England’s planning system. Around 95% of planning applications are for sites under 1 hectare, 88% under 0.5 hectares, and 77% under 0.2 hectares.
The risks are already visible. In BNG’s first year, widespread misuse of exemptions meant that 86% of approved planning applications claimed to be exempt, covering over 23,000ha of development area. Without closing loopholes – particularly the widely abused ‘de minimis’ exemption – today’s announcement could entrench these failures.
Richard Benwell, CEO of Wildlife and Countryside Link, said:
"It's good that exemptions are narrower than originally proposed, but this is still damage limitation, not positive leadership for nature. To meet its electoral promise of halting wildlife decline, Government should strengthen green economy rules, not shrink them. Rapidly applying net gain to all major infrastructure and stopping developers dodging their environmental responsibilities should be clear priorities, not more carve outs.
"So far, this has been a Parliament of delay and relentless deregulatory threats to nature. The public outcry in support of net gain must be a last-chance wake up call that environmental promises weren't a ballot box bonus. Restoring nature and stopping pollution are a key test of the Government’s credibility and it's time for action.”
WCL is now calling for the 'de minimis’ loophole to be removed, as well as BNG rapidly applied to all major infrastructure projects, both on land and sea.
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