Defra: New Planning Rules to Channel £500m from Developers into Nature Restoration

The UK Government has unveiled a £500 million package, funded by developers, to support sweeping planning reforms. Officials say the money will speed up the delivery of new housing and major infrastructure while still protecting the natural environment. The Department for Environment, Food and Rural Affairs confirmed that the funds will be used to support the Nature Restoration and Marine Recovery schemes, as well as to increase staffing capacity at regulators such as Natural England and the Environment Agency.

According to ministers, the reforms are designed to make planning decisions faster and less costly for developers, without watering down environmental responsibilities. The Government hopes the changes will help deliver one and a half million homes and push forward at least 150 major infrastructure projects before the end of this Parliament.

The Nature Restoration Fund will pool developer contributions into larger projects aimed at restoring habitats and wildlife. This is intended to replace the piecemeal, site-by-site approach to environmental assessments that has long been criticised as slow and inefficient. The Marine Recovery Fund will serve a similar purpose, channelling money into measures that offset damage from offshore wind developments, particularly those affecting marine protected areas.

Streamlining regulation is also a central part of the reforms. The Lower Thames Crossing, for example, will be the first project managed under a new model where Natural England leads on environmental approvals while coordinating input from the Environment Agency and the Marine Management Organisation. Defra is also establishing a new Infrastructure Board to address planning issues early, ensuring that more than 50 nationally significant projects, such as Hinkley Point C, East West Rail, and Heathrow Airport expansion, stay on track.

These measures stem directly from the Corry Review, an independent report published in April that assessed the state of environmental regulation. Review leader Dan Corry, a respected economist and former civil servant, concluded that the current system fails both economic growth and the protection of nature.

The review outlined 29 recommendations, and the Government has already begun implementing nine of them. These include the creation of a single digital planning portal, the launch of a Nature Market Accelerator to attract private investment, simplified permits for low-risk projects, and increased flexibility for trusted organisations like the National Trust to undertake conservation work. Other proposals, such as increasing regulator pay to retain experts and updating biodiversity targets, remain under discussion.

Not everyone is convinced. Conservation groups and the Office for Environmental Protection have warned that the reforms could weaken safeguards. They argue that replacing site-specific impact assessments with national funds risks leaving local ecosystems vulnerable to harm. The OEP has also raised concerns about new Environmental Delivery Plans, which rely on a vague “overall improvement test” rather than hard protections, leaving room for interpretation. A coalition of non-profits has been even more scathing, accusing the Government of giving developers what amounts to a licence to damage ecosystems.

At the centre of the debate lies the Biodiversity Net Gain mandate. Introduced in 2024, it requires developers to ensure every project delivers at least a ten percent increase in biodiversity compared to the state of the land before construction. While the preference is to improve biodiversity on-site, developers can also purchase credits for off-site habitat restoration. In its first year, the scheme generated 609 hectares of off-site improvements and restored 93 hectares of on-site land. Once fully scaled, it could deliver benefits to more than 5,400 hectares annually.

Despite this, ministers are considering easing requirements for smaller development sites, which account for around three-quarters of all housing applications. They argue the move could speed up the delivery of homes, but critics see it as a dangerous step backwards.

The UK is already one of the most nature-depleted countries in the world, with only 53 per cent of its biodiversity intact, according to the global Biodiversity Intactness Index. Campaigners warn that weakening safeguards now risks turning planning reform into a free-for-all at precisely the moment when large-scale restoration is most urgently needed.

Green Alliance’s senior fellow Ruth Chambers said: “Dan Corry rightly stressed that environmental regulation must work hand in hand with those enforcing it to meet targets for restoring nature and tackling pollution.

“While appointing lead regulators and a coordinated approach are useful steps, the Government must not forget that regulation is there for a reason – to protect people and the environment and prevent a development free-for-all.

“In its effort to make regulation more efficient, the Government must ensure it drives real environmental outcomes on the ground, not just on paper.”

Friends of the Earth’s nature campaigner Sienna Somers said: “Real planning reforms will only succeed if nature is embedded at the heart of the process – not treated as a problem to overcome or a ‘nice to have.’ When wildlife and habitats are reduced to box-ticking exercises, it leads to avoidable conflict, delays, and higher costs.

“Planning must be nature-led, with the ambition to restore and connect habitats, shaping where and how we build. Nature isn’t the barrier but the foundation for healthier, more resilient communities.”