Environmental rules reviewed for small housebuilders could reshape England’s planning system. The Labour government is proposing reforms to speed up housing delivery and reduce barriers for small developers.
Ministers are examining changes to Biodiversity Net Gain (BNG) rules. These rules, introduced in February, require housing projects to deliver a 10% improvement in biodiversity lasting for 30 years. Developers must assess nature loss and provide compensation through habitat restoration or creation.
The government aims to ease the burden of these environmental requirements on smaller firms. Housing Secretary Angela Rayner said the reforms would simplify planning for minor developments. She stressed that the goal is to support local builders while still protecting wildlife.
Rayner confirmed that environmental rules reviewed in this way are part of a broader package to help meet the national housing target. The government aims to build 1.5 million new homes in England by 2030.
One major proposal includes easing BNG rules for small sites with fewer than 10 homes. There are also plans to let trained planning officers approve small-scale projects instead of local councillors. This would reduce delays and simplify decisions.
In addition, the government wants to exempt housing developments of 10 to 49 homes from a cladding removal tax. Officials believe this would further support smaller firms struggling with rising costs.
Since the 1980s, the market share of small- and medium-sized builders has declined. Back then, these firms delivered 40% of homes. Today, that number is far lower. Rayner said the new plans will “level the playing field” and “get Britain building.”
Not everyone supports the proposed changes. Kevin Hollinrake of the opposition accused Labour of weakening local democracy and harming the environment. He said Labour’s plans involve “higher taxes and less say over development in your community.”
Environmental groups also raised concerns. The Wildlife and Countryside Link warned that exempting small sites would undermine biodiversity protections. They said three-quarters of new developments could escape any obligation to improve nature.
Still, the government insists the environmental rules reviewed under this plan are necessary. Ministers also announced a £100 million loan scheme to help small housebuilders expand their operations.
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