The three bands
- In-LPA (1.0): no discount.
- Neighbouring National Character Area (0.75): 25% discount.
- Outside the NCA (0.5): 50% discount.
The discount applies to off-site units sourced outside the developer’s LPA; on-site delivery is by definition in-LPA at 1.0.[S1]
Interaction with trading rules
The trading rules require like-for-like or better habitat replacement; spatial risk applies before the trading rule test. A spatially-discounted off-site unit still has to satisfy the like-for-like rule on distinctiveness and broad habitat type, which can leave the developer with effectively fewer compliant supply options outside the LPA.
Worked equivalence
A 5 BU on-LPA target equivalent in outside-NCA supply: 5 / 0.5 = 10 BU. The developer must buy 10 outside-NCA units to compensate for 5 in-LPA units; combined with higher trading-rule friction, this typically pushes the rational route back to in-LPA supply or on-site.