Local Habitat Banks

Creating a local Habitat Bank

Biodiversity Net Gain (BNG) is a legal requirement of the national planning system which has applied to most proposals for major development since February 2024 and most proposals for smaller developments since April 2024. It requires developers to deliver a minimum 10% uplift in biodiversity (wildlife) value over and above what was present on site prior to development. In very simple terms, it is no longer just a requirement for development to minimise or mitigate its impact on wildlife; it must now, by law, bring about an improvement – a minimum 10% net increase in biodiversity habitat which is calculated, measured and monitored using a complex biodiversity metric set out in national guidance. 

To achieve 10% BNG, development proposals are required to deliver as much of it as possible on the site that is being developed. Where it is not possible to achieve all the necessary BNG on-site, developers can create the necessary habitat off-site either on other land they control (which would be tied through a legal agreement on the grant of planning permission) or by purchasing ‘biodiversity units’ from a ‘Habitat Bank’ – i.e. a wildlife habitat set up and maintained by third-party landowners for the purposes of BNG and where units can be sold to developers on the open market. In the rare cases where on-site or off-site BNG provision is not possible, developers must – as a last resort – buy statutory biodiversity credits from the Government.

To set up a Habitat Bank and lawfully enter the market for selling biodiversity units to developers, a landowner must register their site with Natural England – which first requires them to either enter into a legal agreement with the local authority or a conservation covenant with another responsible body recognised by Natural England. In doing so, the local authority (or other responsible body) takes on a responsibility to monitor and enforce the obligations set out in any legal agreement.

To aid in the creation of local habitat banks we have produced the attached Habitat Bank Guidance, which sets out the process. This should be used to establish and submit an appropriate site. We have provided an application form which should be completed and submitted to planning@scilly.gov.uk.  A fee has been locally established, as per the Fees and Charges Paper approved at Full Council annually. For 2025 the administration fee is set at £590. 

As part of assessing a site as a Habitat Bank the Council will calculate the 30 year monitoring fee, which will be tied into a legal agreement, using the Verna Monitoring Calculation Tool.