Labour

Government unveils first Nature Restoration Fund plan to unlock up to 15,780 homes

The Government has unveiled the first Environmental Delivery Plan under its Nature Restoration Fund, which ministers say could support up to 15,780 new homes in Norfolk while funding large-scale river and wetland restoration.

By Charlotte Mercer • Published 17 September 2026 at 13:34 • 3 min read
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The Government has unveiled the first plan under its new Nature Restoration Fund, with ministers saying the scheme could help unlock up to 15,780 new homes in Norfolk while funding large-scale improvements to rivers and wetlands.

The first local blueprint, known as an Environmental Delivery Plan (EDP), has been drafted by Natural England and was published for consultation on Thursday 17 September.

It represents the first practical test of a new system designed to allow developers to meet certain environmental obligations by paying into a strategic nature-restoration scheme rather than arranging separate mitigation measures development by development.

Up to 15,780 homes covered by first plan

The Norfolk EDP is designed to support development of up to 15,780 homes across parts of the county affected by nutrient pollution rules.

The area covered includes the River Wensum, Bure Broads and Marshes, and Yare Broads and Marshes catchments across substantial parts of central and eastern Norfolk.

Nutrient pollution has been a major obstacle to housing development in affected areas because new developments have been required to demonstrate that they will not worsen the condition of protected waterways.

Developers would pay Nature Restoration Levy

Under the new approach, qualifying developers would instead be able to make a payment through the Nature Restoration Fund.

Those payments would be pooled and administered by Natural England to fund conservation measures across the wider area.

The proposed Norfolk measures include restoring rivers, creating wetlands and managing fens and reedbeds, with the Government saying the work would improve water quality and habitats across the Broads and Wensum.

The money raised from developers would be ringfenced for conservation measures in Norfolk, together with long-term monitoring and maintenance.

Government says scheme will improve nature as well as offset development

The legal framework requires the conservation measures delivered through an EDP to do more than simply compensate for the environmental effects of development.

The Government says the measures must deliver an overall improvement to nature, with the Norfolk programme expected to benefit species including otters, white-clawed crayfish, bitterns, marsh harriers and fen orchids.

Angela Eagle rejects 'false trade-off'

Environment Secretary Angela Eagle said the Government rejected what she described as a “false trade-off” between delivering new infrastructure and restoring the environment.

She said the Norfolk plan could unlock thousands of homes while raising millions of pounds to improve the natural environment.

Natural England chief executive Marian Spain said the EDP offered a new way of protecting nature while supporting growth by tackling pollution strategically rather than development by development.

Housing and Planning Minister Matthew Pennycook said publication of the first draft EDP demonstrated how the Nature Restoration Fund could work in practice to accelerate development while delivering nature recovery.

First test of system created by Planning and Infrastructure Act

The Nature Restoration Fund was established through the Planning and Infrastructure Act 2025.

It creates an alternative mechanism for housing and infrastructure developers to discharge specified environmental obligations where development affects protected sites or species.

Where an approved EDP applies, developers can choose to use the Nature Restoration Levy for environmental impacts covered by that plan. Local planning authorities must still assess environmental effects not covered by the EDP and comply with other planning and environmental legislation.

Norfolk plan now goes to consultation

The Norfolk EDP has not yet come into force.

Natural England has opened a consultation for 28 working days, allowing communities, developers, environmental organisations and other interested parties to respond before the final plan is submitted to the Secretary of State.

Natural England is also developing Environmental Delivery Plans for other parts of England where nutrient pollution is restricting housing development, with further details expected later.

Sources

  1. UK Government: Government unveils plans to unlock over 15,000 new homes
  2. UK Government: Environmental Delivery Plans
  3. UK Government: Understanding the Nature Restoration Fund
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