Why Government Statutory Credits Cost Twice as Much
Defra deliberately established statutory biodiversity credits as a 'mechanism of last resort' to avoid creating a state-run monopoly.
Under Regulation 10 of the Biodiversity Gain (Statutory Credits) Regulations, an applicant can only purchase statutory credits if they prove no suitable on-site solution exists and no private off-site units are available within the market.
To enforce this, Defra applies a mandatory 2:1 spatial multiplier: for every 1.0 unit of biodiversity deficit identified in your calculation, you must purchase 2.0 statutory credits.
| Credit Tier | Habitat Category Description | Unit Price (excl. VAT) | Effective Cost per Unit (2:1 Ratio) |
|---|---|---|---|
| Tier A1 | Low distinctiveness modified grassland, ruderal scrub | £42,000 | £84,000 + VAT |
| Tier A2 | Medium distinctiveness mixed scrub, semi-improved grassland | £48,000 | £96,000 + VAT |
| Tier B | Native broadleaf woodland, lowland calcareous grassland | £60,000 | £120,000 + VAT |
| Tier C | High distinctiveness priority heathland, reedbed fens | £100,000 | £200,000 + VAT |
| Tier E | Scarce priority habitats (e.g. limestone pavement, blanket bog) | £650,000 | £1,300,000 + VAT |
Regional Price Variations in Private Off-Site Markets
Private unit prices fluctuate by Local Planning Authority (LPA) boundary.
In high-density southern boroughs (e.g. Surrey, Berkshire, Greater London fringes) where agricultural land values exceed £30,000/acre, private BNG units trade at £38,000 to £50,000.
In northern and midlands rural districts (e.g. Lincolnshire, Cumbria, Northumberland), abundant land supply compresses private prices to £18,000–£26,000 per unit.