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ARTICLE · 02 JULY 2026

UK Government Publishes Draft Regulations To Implement The Nature Restoration Levy

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The UK Government has introduced a new framework for offsetting environmental harms from housing and infrastructure development through the Nature Restoration Fund and Nature Restoration Levy. This approach pools money from individual developments to fund strategic environmental interventions, replacing the previous site-by-site mitigation system that was criticized for failing to halt environmental decline while slowing housing schemes.

United KingdomEnvironment

1. Introduction

In a bid to spur economic growth and reverse environmental decline, in 2025, the UK Government introduced a new approach to off-setting environmental harms caused by new housing and infrastructure development.

Until now, the approach had been to require developers, on a site-by-site basis, to calculate the environmental harm caused by their development and and either make off-site compensating provision or make an equivalent payment to the local authority. This was criticised both by developers and environmental activists for failing to halt environmental decline, whilst at the same time slowing—and sometimes halting—much-needed housing schemes.

By establishing the Nature Restoration Fund ("NRF")and the Nature Restoration Levy ("NRL"),the Government's new approach is to pool money raised from individual developments and deploy it to fund strategic interventions that are intended to provide a greater benefit than currently is achieved dealing with matters on an

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