Nature restoration levy enforcement actions and appeals process
Guidance on the enforcement actions for missed or late nature restoration levy payments and the appeals process for developers.
Applies to England
Natural England can take enforcement action if developers do not pay the nature restoration levy or meet other requirements under the Nature Restoration Levy Regulations 2026.
Natural England will impose surcharges as standard procedure but will exercise its discretion not to impose surcharges where exceptional circumstances arise.
This can include:
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surcharges and interest – if developers do not meet certain regulatory requirements
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stop notices – which can require development to stop until an overdue payment is made
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debt recovery and local land charge enforcement – to recover outstanding levy payments
Surcharges
Surcharges may be imposed in a number of circumstances, as set out below, where a developer or liable person fails to comply with the Nature Restoration Levy Regulations 2026.
Surcharge for failure to assume liability
Where an Environmental Delivery Plan (EDP) is relied on before the start of a development, liability must be assumed before that development starts.
If it is not, Natural England must impose liability on individuals with material interests in the land in line with regulation 16. In such cases, liable persons will be subject to a surcharge.
Where a request to use the nature restoration levy is made after the commencement of development, liability must be assumed within 28 days of the acceptance of the request. Or if a further consent is required (such as a reserved matters consent), then within 28 days of that consent being given. If liability is not assumed by this time, liability will be imposed by Natural England and this surcharge will also be applied.
The surcharge amount is the greater of 2% of the levy amount, or £300. If there are multiple material interests in the land, a separate surcharge for each individual interest may be imposed based on their apportioned liability.
Surcharge for late payment
If a liable person does not pay an overdue amount of the levy within the time period specified in the Nature Restoration Levy Regulations they will incur a late payment surcharge which will increase incrementally.
An initial surcharge of 5% will be imposed if the overdue amount has not been paid 30 days after the payment due date.
If the outstanding amount is not paid within 6 months of the payment due date, an additional surcharge of 5% of the principal amount (not including any surcharges or interest) will then be imposed.
A further surcharge of 5% of the principal amount (not including any surcharges or interest) will be imposed if the outstanding amount remains unpaid after 12 months.
Where 5% of the levy amount is less than £300 the surcharge amount will be £300, though if the total levy amount is less than £1000, no surcharge will be imposed.
For example, if the total amount of the nature restoration levy due to be paid in relation to a development is £10,000, and this was not paid by the due date set out in the liability notice, the surcharges incurred will be as follows:
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After 30 days the surcharge amount would be £500, making the amount due £10,500
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After 6 months a further £500 surcharge would be applied, making the amount due £11,000
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After 12 months a final £500 surcharged would be added to the amount, bringing the total amount due to £11,500
These figures do not include late payment interest which would also be accruing on overdue sums.
Surcharge for failure to notify of material changes in development
Where the details of development that have informed the calculation of the levy have changed the liable person is required to notify Natural England. The updated details will then be used to recalculate the amount of the levy.
If the details of development have materially changed and the liable person has failed to notify Natural England, a surcharge will be imposed. This is to ensure the correct amount of levy can be collected for the relevant development.
In this scenario the surcharge is either £300 or 30% of the levy amount, whichever is the lower. This surcharge will only be imposed where the recalculated amount of the levy is at least £300 greater than the levy amount before the material change and corresponding recalculation.
Interest
If a liable person does not pay an outstanding levy amount by the due date specified in the liability notice interest will accrue on the outstanding amount.
Interest will accrue from the day after the payment was due and will be charged at 2.5 percentage points above the Bank of England base rate. Interest on overdue payments does not compound, it accrues only on the outstanding overdue amount of the levy.
Once Natural England have become aware that a payment is overdue and interest has started to accrue, they must give notice to the liable persons.
Levy liability is not discharged until the outstanding amount has been paid, inclusive of any interest that has accrued.
A liable person can request a calculation of the interest that has accrued on an overdue amount from Natural England. A response must be provided by Natural England within 14 days of such a request being received.
Warning notices
Before a stop notice can be issued Natural England must first issue a warning notice to the liable persons. A warning notice may be issued if there is an overdue levy payment and Natural England consider it expedient for development to stop until this has been paid.
Natural England must set a time period after which a stop notice may be issued if payment is not received. This must be between 3 days and 28 days after the warning notice was issued.
Warning notices and stop notices must include the information required by the Nature Restoration Levy Regulations 2026 and must be sent to:
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each liable person
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each owner of the land
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each occupier of the land
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every other person who may be materially affected by a stop notice
Stop notices
Where development has commenced without an overdue outstanding amount of the levy being paid, Natural England have powers to issue a stop notice.
Where a stop notice is issued, development on site is required to stop. This does not prohibit works that are necessary for health and safety.
A stop notice has effect from the date specified in the notice until the day that Natural England confirms that the stop notice has been withdrawn. A stop notice must be withdrawn when the overdue outstanding amount is paid or the levy liability is discharged.
Additional enforcement powers
The Nature Restoration Levy Regulations also allow Natural England to seek court injunctions where a stop notice is breached, register levy liabilities as local land charges and enforce the charge as appropriate, and recover unpaid levy amounts, surcharges and interest as a debt where necessary.
Reviews
A liable person may request a review if they believe that Natural England has made an error in calculating the levy amount or apportioning levy liability. A review request must be submitted to Natural England within 28 days of receiving the relevant liability notice.
A review may be requested in relation to:
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the calculation of the amount of the levy payable for a relevant development
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the apportionment of levy liability between material interests in the land, where liability has been imposed by Natural England
Natural England will review whether the levy has been calculated or apportioned correctly.
Following the review process, Natural England will either:
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confirm the original decision
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issue a revised levy calculation or liability apportionment
Natural England will then notify all liable persons of the outcome, including the reasons for its decision, within 21 days of receiving the review request.
Payments during a review
While a review is being considered, levy payments for the relevant development do not need to be made and cannot become overdue.
Following the review, Natural England may issue revised payment deadlines where necessary.
When a review can’t be requested
A review cannot generally be requested where:
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the same matter has already been reviewed or appealed and has not subsequently changed
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liability for the levy has already been discharged
Appeals
If a liable person is not satisfied with the outcome of a review, they may appeal the original decision on the calculation of the levy or the apportionment of liability to the Secretary of State for Environment, Food and Rural Affairs.
A liable person may also appeal against other Natural England decisions for which there is no prior review procedure.
While an appeal is ongoing, no levy payments are required to be made and an outstanding amount cannot become overdue.
A liable person may make an appeal against:
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the calculation of the levy amount
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the apportionment of levy liability
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a surcharge applied or interest accrued on an overdue payment
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a surcharge applied for failure to assume liability
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a surcharge applied for failure to notify of material change in development
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the issue of a warning notice or a stop notice
How to make an appeal
An appeal is made through the submission of an appeal notice to the Secretary of State. The appeal notice should set out:
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the appellant’s details
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details of the development
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the decision which is being appealed
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the grounds of the appeal
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the appellant’s representations
Once an appeal notice is received, the Secretary of State must acknowledge receipt of the appeal and share the notice with Natural England, the appellant, and any other liable person.
Interested parties will then have 14 days to submit written representations, and a further 14 days to comment on representations made by other interested parties.
Copies of representations and comments will be shared with all interested parties.
What happens next?
After considering all submissions, the Secretary of State will notify interested parties of the decision and the reasons for it.
The Secretary of State will do one of the following:
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confirm the original calculation, apportionment, or other decision
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reverse the decision to impose a surcharge or interest
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recalculate the amount of the levy, a surcharge, or interest or reapportion the liability and issue a revised calculation or liability apportionment
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require Natural England to issue a revised levy calculation or liability apportionment