Recommendations & Conclusions
30 items
2
Recommendation
74th Report - Environmental regulation
Accepted in Part
Defra has not set out precisely what environmental regulation should achieve and how the regulators should be set up to achieve this. Regulators currently operate across a complex landscape, with overlapping responsibilities, differing cultures and inconsistent approaches. Yet Defra has not set out clearly what environmental regulation is intended to …
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Defra has not set out precisely what environmental regulation should achieve and how the regulators should be set up to achieve this. Regulators currently operate across a complex landscape, with overlapping responsibilities, differing cultures and inconsistent approaches. Yet Defra has not set out clearly what environmental regulation is intended to achieve, nor how regulators should be configured to deliver those outcomes. Regulators want greater clarity from Defra. The lack of strategic direction from Defra limits the regulators’ ability to plan coherently, target resources effectively or demonstrate how their work contributes to statutory environmental objectives. Defra sees no overall benefit in merging the regulatory responsibilities of Natural England and the Environment 3 Agency, despite forthcoming changes to water regulation presenting an opportunity for further wide-ranging reform. The Environment Agency has yet to establish a responsive and proportionate approach to inspections, and both regulators lack clarity from Defra over where they are empowered to take risks and innovate. recommendation a. As a first step towards developing a coordinated plan, Defra should set out a clear vision for environmental regulation with a focus on what matters and what makes the most difference b. Defra should take the opportunity presented by the changes in water regulation to explore the merits of bringing all its regulatory functions together to improve efficiency and enable the establishment of a single organisational culture which balances protection and enhancement of nature and the environment with supporting economic growth. c. If Natural England and the Environment Agency are not to be merged, then Defra should conduct a thorough examination to determine where they could cooperate more closely, such as in planning, legal functions, comprehensive advice and IT.
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Government response AI summary
Defra has set out a clear vision for environmental regulation through Strategic Policy Statements, but disagrees with the recommendation to bring all regulatory functions together.
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HM Treasury
3
Recommendation
74th Report - Environmental regulation
Accepted
Defra and the regulators are still a long way from where they need to be in modernising their IT systems and processes. In 2023, we reported that Defra and its arm’s-length bodies had one of the most significant legacy IT challenges in government, with 300 high-risk legacy IT applications. Since …
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Defra and the regulators are still a long way from where they need to be in modernising their IT systems and processes. In 2023, we reported that Defra and its arm’s-length bodies had one of the most significant legacy IT challenges in government, with 300 high-risk legacy IT applications. Since then, they have made some progress by, for example, replacing 200 of these legacy IT systems. But there is still a long way to go, with Defra saying it will take another 18 months just to replace the remaining 100 applications. The Environment Agency has improved its digital systems: it has closed 350 legacy systems and modernised others, but there are still issues to address. Not all internal IT systems connect with each other, or with other IT systems across the Defra Group. In comparison to the Environment Agency, Natural England has made much less progress in improving its IT systems and received limited funding for digital transformation in recent years. Defra received £300 million in the 2025 Spending Review for its ongoing digital transformation efforts. We are encouraged by Defra and the regulators’ reduced reliance on contingent labour for digital expertise, but digital skills remain one of the key capability gaps across the organisations. 4 recommendation a. Environment Agency and Natural England should ensure they have sufficient digital and technology skills at their executive level, for example by appointing a Chief Digital Officer or Chief Technology Officer. b. Defra should ensure that its regulators are receiving the investment in digital they need to modernise.
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Government response AI summary
Natural England has assigned a Chief Officer with responsibility for Digital and Data; Defra is directing transformation investment towards regulatory activities.
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HM Treasury
4
Recommendation
74th Report - Environmental regulation
Accepted
Waste regulation as currently set up is not effective enough at stopping waste crime or non-compliance. Regulation of the waste sector is not adequately addressing the rising problem of illegal waste dumping. We are encouraged by the Environment Agency’s recent enforcement action at a permitted landfill site where there was …
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Waste regulation as currently set up is not effective enough at stopping waste crime or non-compliance. Regulation of the waste sector is not adequately addressing the rising problem of illegal waste dumping. We are encouraged by the Environment Agency’s recent enforcement action at a permitted landfill site where there was large-scale pollution. However, the widespread and increasing issue of illegal waste sites surpasses the Environment Agency’s powers. The Agency lacks the option of enforcing civil powers against illegal sites and is restricted to the lengthier and more expensive route of criminal prosecutions. The Agency may have responded quickly once it got ‘confirmed intelligence’ about illegal dumping at Kidlington in Oxfordshire, but local bodies had been aware of the problem for weeks before that. However, this incident illustrates the gaps in its intelligence on this type of criminality and highlights how it lacks the ability to collaborate effectively with other bodies such as the police and local authorities. recommendation a. Defra should set up closer co-operation and sharing of intelligence between the Environment Agency, Local Authorities, the police and other agencies on illegal waste dumping risks. b. Defra should examine the potential for technology to improve response times when illegal activity occurs that affects the environment.
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Government response AI summary
Defra will strengthen intelligence capabilities, invest in advanced technologies, and review intelligence sharing between agencies to improve detection of waste crime, including evaluating the application of new technologies to improve response times. The Home Office and NPCC will review the multi-agency response and the Environment …
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HM Treasury
5
Recommendation
74th Report - Environmental regulation
Deferred
Defra and the regulators are not doing enough to provide guidance and support to help farms and other businesses comply. Most businesses want to comply with environmental regulations, but farmers and other businesses need more assistance than they currently get from the regulators so that it is as easy as …
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Defra and the regulators are not doing enough to provide guidance and support to help farms and other businesses comply. Most businesses want to comply with environmental regulations, but farmers and other businesses need more assistance than they currently get from the regulators so that it is as easy as possible to do so. The regulators have started making changes to address this and improve their guidance. This includes adding real-life case studies so that businesses better understand how regulations should operate, and using digital communications such as automated chat messaging to help direct businesses towards the relevant online guidance more quickly. 5 However, Defra is planning initiatives that will add further complexity for the farming sector, including changes to the environmental land management schemes and publishing its 25-year vision for agriculture. The launch of the new water regulator will also create additional burdens and regulatory touchpoints for farmers. recommendation Defra should assess how upcoming changes will affect the way farmers need to engage with regulators. This should include the impact of the new water regulator, updates to Environmental Land Management schemes, and the upcoming farming roadmap. Defra should report to us within six months on how disruptions will be minimised and the progress made on: - Understanding the implications of the new water regulator; - Understanding the impact of changes to farming policy and how it will allow farmers sufficient time for transition; and - Ensuring that farmers are sufficiently supported.
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Government response AI summary
Defra is reviewing how farmers access regulatory guidance and will develop a delivery plan in January 2027; they will publish the Farming Roadmap this year.
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HM Treasury
6
Recommendation
74th Report - Environmental regulation
Accepted
The Nature Restoration Fund has potential to benefit the environment and support developers, but we are not yet convinced Defra and Natural England are able to implement it effectively. The Nature Restoration Fund is an innovative solution to raising funds and commissioning projects to improve the environment when building, housing …
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The Nature Restoration Fund has potential to benefit the environment and support developers, but we are not yet convinced Defra and Natural England are able to implement it effectively. The Nature Restoration Fund is an innovative solution to raising funds and commissioning projects to improve the environment when building, housing and infrastructure developments affect protected sites or species. It is an optional scheme which developers can join to discharge their environmental obligations. The Fund has the potential to better protect the environment, though it is in the early stages of policy design. Natural England expects to publish the first Environmental Delivery Plans in the Spring and Summer of 2026. Defra and its arm’s length bodies do not have a good and consistent track record in delivering complex and innovative schemes. Defra’s Biodiversity Net Gain initiative included similar aims to those of the Nature Restoration Fund, but was launched before it had all the elements in place which would enable its long-term success. Natural England will be leading on implementation of the Fund but has gaps in planning and digital skills, and is already under pressure to deliver its current responsibilities. We intend to provide scrutiny of the Nature Restoration Fund as its implementation progresses, to ensure that it delivers the intended benefits. We have concerns how, in the Nature Restoration Fund, Natural England will balance its obligations to restore nature with providing a timely and value for money scheme without putting extra burdens on developers. 6 recommendation a. Defra and Natural England should set out their plans to report publicly on progress and milestones with the Nature Restoration Fund, and should provide regular progress updates. b. Defra should clarify how the Nature Restoration Fund and Biodiversity Net Gain will work alongside each other, and how it will apply lessons learned from its implementation of Biodiversity Net Gain to the implement
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Government response AI summary
Defra and Natural England published the Nature Restoration Fund (NRF) Implementation Plan, setting out the approach to delivering the NRF, including plans for reporting on progress. The government will also provide updates on key developments as delivery progresses and has committed to report back to …
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HM Treasury
1
Conclusion
74th Report - Environmental regulation
Acknowledged
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Environment, Food & Rural Affairs (Defra), the Environment Agency, and Natural England.1
Government response AI summary
The government agrees with the Committee’s concerns about the effectiveness, coherence and resourcing of environmental regulation, and will provide a written update within six months, setting out progress across these reforms.
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HM Treasury
7
Conclusion
74th Report - Environmental regulation
Accepted
After a period of limited change to the regulatory landscape, three major reviews in 2025 made 149 recommendations to Defra or its arm’s-length bodies. Defra told us that a common finding from the reviews was that the regulatory system was not achieving the intended outcomes for the environment or for …
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After a period of limited change to the regulatory landscape, three major reviews in 2025 made 149 recommendations to Defra or its arm’s-length bodies. Defra told us that a common finding from the reviews was that the regulatory system was not achieving the intended outcomes for the environment or for the economy and growth.8 This has been affected by limitations in the regulators’ systems and data, skills shortages, allocation of limited resources, and a culture of risk aversion.9 Defra explained that the reviews mean it should work in a different way, such as focusing less on process and more on outcomes.10 But changing working practices and shifting the organisational culture of the regulators to become less risk averse will be challenging. Both regulators told us they were changing their regulatory processes and systems in response to the three independent reviews: the Environment Agency is introducing more consistent 5 Committee of Public Accounts, Environmental regulation - Written evidence 6 C&AG’s Report, para 4 7 Defra, Environmental Improvement Plan (EIP) 2025, 1 December 2025 8 Q 1 9 C&AG’s Report, para 14 10 Q 2 9 approaches to how it regulates, and raising the professional skills of its staff;11 and Natural England has set up a new programme management and change management unit, and organised this work into four critical reform programmes.12
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Government response AI summary
The government states it is 'already delivering' a coordinated reform programme that addresses the committee's concerns about the effectiveness, coherence, and resourcing of environmental regulation. This programme integrates recommendations from multiple reviews, focusing on prioritising reforms for maximum impact.
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HM Treasury
8
Conclusion
74th Report - Environmental regulation
Accepted
Both the regulators and Defra consider the complexity of the legislation under which they operate to be a barrier to improvement.13 The Environment Agency told us that tackling some of the obsolete legislation is a way to it to unblock some of the difficult problems it experiences.14 It described how …
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Both the regulators and Defra consider the complexity of the legislation under which they operate to be a barrier to improvement.13 The Environment Agency told us that tackling some of the obsolete legislation is a way to it to unblock some of the difficult problems it experiences.14 It described how its frontline staff try to reconcile a whole range of different conflicting agendas which it finds challenging. Natural England told us the legislation can feel restrictive or narrow and be a constraint.15
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Government response AI summary
The government acknowledges the issue, stating that key elements are being addressed through the Water White Paper, forthcoming Water Reform Bill, and Corry Review recommendations. Defra has also committed to consolidating complex agricultural water pollution regulations into a single set of clear national standards.
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HM Treasury
9
Conclusion
74th Report - Environmental regulation
Accepted
Defra already has challenges and pressures over the next few years and has potentially substantial further forthcoming change. Defra assured us that it was able to take on the challenges and that it had the skills and resources to lead these changes.16 Defra will need to prove that it does …
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Defra already has challenges and pressures over the next few years and has potentially substantial further forthcoming change. Defra assured us that it was able to take on the challenges and that it had the skills and resources to lead these changes.16 Defra will need to prove that it does have the skills and resources to deliver the scale of regulatory change that the country needs. This is particularly challenging as some regulations and objectives are in competition, such as prioritising water quality as opposed to food production. Defra told us it was pleased with the progress it has made since the NAO report from 2023 on reviewing and revising existing regulations, but recognised that improving the regulatory system will be an ongoing endeavour.17 However, the scale of change required is substantial, and Defra and the regulators are not meeting even current demands effectively.18 Written evidence we received, in particular from Arbtech, an ecological consultancy, raised concerns about the capacity and capability of the environmental regulators to deliver their existing commitments, as well as to perform new duties.19 11 Q 4 12 Q 8 13 Qq 2-3 and 5 14 Q 3 15 Q 44 16 Q 7 17 Qq 19 and 43 18 Qq 3 and 9 19 Arbtech (ENR0011) 10 Defining what regulation should achieve and how
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Government response AI summary
The government acknowledges the concerns about effectiveness and resourcing, stating it is 'already delivering' a coordinated reform programme. This programme integrates recommendations from several reviews and includes initiatives like Lead Environmental Regulator (LER) pilots and new Strategic Policy Statements to strengthen regulators' culture, capability, and …
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HM Treasury
10
Recommendation
74th Report - Environmental regulation
Accepted
Environmental regulation is complex, with more than 3,000 separate pieces of legislation and more than 150 pieces of historic regulation on farming alone.20 Each regulator has a wide and complex regulatory remit and applies a range of approaches. The Environment Agency and Natural England, along with other regulatory bodies, have …
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Environmental regulation is complex, with more than 3,000 separate pieces of legislation and more than 150 pieces of historic regulation on farming alone.20 Each regulator has a wide and complex regulatory remit and applies a range of approaches. The Environment Agency and Natural England, along with other regulatory bodies, have responsibilities that are similar and can overlap. For example, farms need to engage with the Environment Agency, Natural England, the Food Standards Agency, the Animal & Plant Health Agency, the Rural Payments Agency and others.21 The Environment Agency and Natural England have different cultures, approaches and priorities which can affect how well joint-working efforts work in practice. Even though the regulatory aspects of the water sector are to be merged in 2026, Defra told us it did not think a more extensive merger of the Environment Agency and Natural England would have a net overall benefit. Defra told us the system of regulation for the water sector is broken, but that it has not reached this stage for other areas of regulation.22 This is one of the reasons for merging water regulators.
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Government response AI summary
The government accepts the recommendation, stating it has established the Planning Reform Portfolio for coordinated action and is piloting the Lead Environmental Regulator model to improve collaboration between bodies like Natural England and the Environment Agency, with a focus on shared services and common capabilities.
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HM Treasury
11
Recommendation
74th Report - Environmental regulation
Accepted
Defra’s approach to environmental regulation has largely been reactive rather than based on a clear strategy and evidence of what is needed. Its regulatory approach has tended to focus on short-term priorities or high- profile issues, as shown by recent increases in farm and water company inspections.23 We asked Defra …
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Defra’s approach to environmental regulation has largely been reactive rather than based on a clear strategy and evidence of what is needed. Its regulatory approach has tended to focus on short-term priorities or high- profile issues, as shown by recent increases in farm and water company inspections.23 We asked Defra what a good strategic approach to regulation should be. Defra responded that it is important to be clear what success looks like and acknowledged that it has not set out its required outcomes as clearly as it should in some areas. Defra told us it will soon issue “strategic policy statements” for both Natural England and the Environment Agency which will set out clearly what Defra expects them to do and how.24 Defra published these strategic policy statements on 12 March 2026.25 Defra explained it ultimately wants to set out where its regulators can be flexible and where they should take a robust approach. Defra also told us that it needs to draw a stronger connection between the activities it asks regulators to do and the outcomes it wants the regulators to achieve.26 20 C&AG’s Report, para 2.15 21 C&AG’s Report, para 3.2 22 Q 91 23 C&AG’s Report, para 15 24 Q 42 25 Natural England, Strategic Policy Statement for Natural England, 12 March 2026; Environment Agency, Strategic Policy Statement for the Environment Agency, 12 March 2026 26 Q 6 11
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Government response AI summary
The government agrees and states the recommendation has been implemented by publishing Strategic Policy Statements for the Environment Agency and Natural England on 12 March 2026, setting out strategic priorities and expectations for regulators.
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HM Treasury
12
Recommendation
74th Report - Environmental regulation
Accepted
When we asked the regulators what they would most value from Defra to improve the way they can regulate, both responded that they need clarity of outcomes and frameworks, standards and rules, and targets and performance metrics. Natural England told us it wants to know what work it should prioritise, …
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When we asked the regulators what they would most value from Defra to improve the way they can regulate, both responded that they need clarity of outcomes and frameworks, standards and rules, and targets and performance metrics. Natural England told us it wants to know what work it should prioritise, but does not have the resources to address all Defra requirements concurrently.27 It wants Defra to provide a clear framework it should operate in, which would allow its staff to innovate within this framework.28 The Environment Agency told us it wants more clarity on priorities in the water sector, including the environmental outcomes Defra wants.29
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Government response AI summary
The government accepts the recommendation, stating it has implemented it by publishing Strategic Policy Statements for the Environment Agency and Natural England on 12 March 2026, which set out clear strategic priorities and frameworks for their operations.
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HM Treasury
13
Conclusion
74th Report - Environmental regulation
Accepted
Defra’s approach to funding the regulators shows that Defra does not always appear to have considered the total costs and benefits of changes. For example, from 2018–19, Defra cut funding for inspections of non- permitted farms before increasing it again from 2020–21.30 Defra explained it has learned from the higher …
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Defra’s approach to funding the regulators shows that Defra does not always appear to have considered the total costs and benefits of changes. For example, from 2018–19, Defra cut funding for inspections of non- permitted farms before increasing it again from 2020–21.30 Defra explained it has learned from the higher number of farm inspections and now better understands where risks are and where they are not, which it will use to focus future inspections. The Environment Agency told us, however, that it has only recently started to determine the best level of inspection for farming and water, and that it is yet to work out how best to target the inspections and how to use data from inspections effectively.31,32 Modernising IT systems and processes
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Government response AI summary
Defra states it is already delivering a coordinated reform programme to address concerns about environmental regulation, drawing on various reviews and upcoming legislation. It will provide a written update within six months detailing progress on these reforms, which include regulatory governance and delivery changes.
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HM Treasury
14
Conclusion
74th Report - Environmental regulation
Accepted
In 2023, the previous Committee reported that Defra had one of the most significant legacy IT challenges across government, with a proliferation of outdated applications.33 Data and intelligence gaps still affect the work of the regulators, with their ability to access and use data constrained by outdated IT systems. For …
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In 2023, the previous Committee reported that Defra had one of the most significant legacy IT challenges across government, with a proliferation of outdated applications.33 Data and intelligence gaps still affect the work of the regulators, with their ability to access and use data constrained by outdated IT systems. For example, a lack of inspection and environmental data affects the Environment Agency’s ability to detect significant harm, and Natural England uses generic and out-of-date information when it makes decisions.34 Defra told us it had made progress with replacing its 300 high- risk legacy applications. Defra has improved 200 systems and closed down some high-risk data centres. Defra expects that the remaining 100 high-risk applications will take another 18 months to replace.35 Defra received £300 27 Q 75 28 Q 44 29 Q 68 30 C&AG’s Report, para 3.14 and Figure 4 31 Q 3 32 C&AG’s Report, para 2.5 33 Committee of Public Accounts, Tackling Defra’s ageing digital services, Fifty-First Report of Session 2022–23, HC 737, 18 April 2023 34 C&AG’s Report, para 2.5 35 Q 71 12 million in the 2025 Spending Review to invest between 2026–27 and 2028–29 on its ongoing digital transformation efforts, and Defra stated that it will invest £800 million a year over the Spending Review 2025 (SR25) period, including cybersecurity upgrades and an IT transformation programme.36
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Government response AI summary
The government agrees, stating the recommendation has been implemented with significant investment in digital transformation, including £100 million for a cross-Defra digital planning reform programme and £800 million per annum for various digital services and IT improvements across regulatory activities.
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HM Treasury
15
Recommendation
74th Report - Environmental regulation
Accepted
Defra told us that historically the Department and its arm’s-length bodies developed their own IT systems, and these do not always interact easily with each other. Defra told us it had tried to bring these together centrally and that it had made some digital improvements, but it has a long …
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Defra told us that historically the Department and its arm’s-length bodies developed their own IT systems, and these do not always interact easily with each other. Defra told us it had tried to bring these together centrally and that it had made some digital improvements, but it has a long way to go. The Environment Agency told us it has a centralised data and digital system that can share information with other environmental regulators, but it would benefit from Defra setting a clearer set of data standards and rules.37 In addition to addressing the digital legacy issues, Defra told us it is making more use of AI and cutting-edge technologies. It has launched around 20 AI pilots across the Defra group, intending to improve its communication channels with customers. For example, its application ‘AI4Peat’ uses satellite imagery to assist farmers and landowners in the renewal of peatland.38
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Government response AI summary
The government accepts the recommendation and commits £100 million for a cross-Defra digital planning reform programme, focusing on common data models, aligned casework systems, and geospatial mapping. An additional £460 million is earmarked for wider digital transformation across regulatory activities, including specific projects for waste, …
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HM Treasury
16
Conclusion
74th Report - Environmental regulation
Accepted
The Environment Agency told us it had a large legacy IT problem in 2020, with 700 IT systems in total. It told us it had modernised its systems and closed down 350 applications. It had also improved the transparency of its information by publishing all its reports on water quality. …
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The Environment Agency told us it had a large legacy IT problem in 2020, with 700 IT systems in total. It told us it had modernised its systems and closed down 350 applications. It had also improved the transparency of its information by publishing all its reports on water quality. However, it acknowledged it has issues still to address, for example replicating this transparency in other sectors such as waste.39 Natural England has received limited funding for digital transformation of its core regulatory services in recent years.40 It told us it hopes future investment will allow it to mirror the digital improvements at the Environment Agency. It plans to invest in customer-facing regulatory systems which are more user-friendly and should speed up processing times, and to make use of AI when handling data.41
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Government response AI summary
The government agrees and states the recommendation is implemented. It details £100 million in funding for a cross-Defra digital planning reform programme, including specific investments for casework management, data, online guidance, waste regulation, and water reform.
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HM Treasury
17
Conclusion
74th Report - Environmental regulation
Accepted
We asked how gaps in digital skills affected Defra and the regulators. Defra told us it has the skills at a senior level, with a Chief Digital Information Officer, along with a non-executive board member possessing expertise in digital skills.42 More generally across the organisation, Defra told us that digital …
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We asked how gaps in digital skills affected Defra and the regulators. Defra told us it has the skills at a senior level, with a Chief Digital Information Officer, along with a non-executive board member possessing expertise in digital skills.42 More generally across the organisation, Defra told us that digital and data skills had historically been lacking and are always needed. It needs both the specialist digital 36 Q 71. The Spending Review 2025 includes departmental budgets for day-to-day spending until 2028–29 and capital investment until 2029–30 37 Q 75 38 Q 71 39 Q 26 40 C&AG’s Report, para 2.23 41 Q 73 42 Q 72 13 skills in its centralised IT service and also the digital literacy skills across the workforce. Defra told us in recent years it had significantly reduced its reliance on agency IT staff from around 25% to around 3% of all IT staff.43 43 Q 85 14 2 Supporting nature and growth Waste regulation
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Government response AI summary
The government agrees and states the recommendation is implemented, noting Natural England has assigned a Chief Officer for Digital and Data, and the Environment Agency has a Director of Service Transformation, fulfilling similar roles within Defra Group's federated model.
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HM Treasury
18
Conclusion
74th Report - Environmental regulation
Accepted
The Environment Agency regulates a range of industrial sectors and various parts of the waste management system, including landfill sites, mining, energy from waste, producer packaging and international waste shipments.44 It issues permits to, and inspects, waste sites. In 2024–25 it inspected 6,618 permitted waste sites.45 The Environment Agency told …
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The Environment Agency regulates a range of industrial sectors and various parts of the waste management system, including landfill sites, mining, energy from waste, producer packaging and international waste shipments.44 It issues permits to, and inspects, waste sites. In 2024–25 it inspected 6,618 permitted waste sites.45 The Environment Agency told us that last year 40,000 of the 100,000 phone calls it received were complaints about the smell or disruption caused by permitted waste sites.46 It also told us that 460 waste sites across the UK had been in the worst performing category for more than one year, indicating these sites are risking damage to the environment, people or places. It explained that these worst performing sites were at risk of having their permit suspended or revoked. The Environment Agency told us it had revoked some permits recently, including the permit for the landfill site at Walley’s Quarry in Staffordshire, which had caused noise and disruption to the local area for many years.47
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Government response AI summary
The government agrees and aims for implementation by September 2027. It will strengthen intelligence capabilities through the Waste Crime Action Plan, invest in advanced technologies, establish an Operational Waste Intelligence and Analysis Unit, and use HM Land Registry data to detect unusual activity.
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HM Treasury
19
Conclusion
74th Report - Environmental regulation
Accepted
The Environment Agency also has some responsibilities for tackling waste crime. Waste crime refers to, for example, sites which operate without a permit, breaches of permit conditions, fly tipping, and failure to pay landfill tax.48 In 2022, the NAO estimated the cost to the English economy from waste crime to …
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The Environment Agency also has some responsibilities for tackling waste crime. Waste crime refers to, for example, sites which operate without a permit, breaches of permit conditions, fly tipping, and failure to pay landfill tax.48 In 2022, the NAO estimated the cost to the English economy from waste crime to be more than £900 million per year. Fly-tipping and illegal waste sites, the costliest types of waste crime, are increasing.49 In its 25-Year Environment Plan, published in 2018, government set the ambition to eliminate waste crime and illegal waste sites within 25 years.50 44 C&AG’s Report, para 2.5 45 C&AG’s Report, figure 4 46 Q 11 47 Q 10 48 C&AG’s Report, Investigation into government’s actions to combat waste crime in England, HC 1149, 27 April 2022, para 3 49 C&AG’s Report, Investigation into government’s actions to combat waste crime in England, HC 1149, 27 April 2022, para 1 50 C&AG’s Report, Investigation into government’s actions to combat waste crime in England, HC 1149, 27 April 2022, para 4 15
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Government response AI summary
The government agrees and aims for implementation by September 2027. It will strengthen intelligence capabilities through the Waste Crime Action Plan, invest in advanced technologies, establish an Operational Waste Intelligence and Analysis Unit, and use HM Land Registry data to detect waste crime earlier.
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HM Treasury
20
Recommendation
74th Report - Environmental regulation
Accepted
The Environment Agency told us that tackling illegal waste sites is also the responsibility of local authorities or the police. The Environment Agency lacks some powers to act, such as civil enforcement powers which are often faster and cheaper than criminal prosecutions.51 The Environment Agency told us about its actions …
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The Environment Agency told us that tackling illegal waste sites is also the responsibility of local authorities or the police. The Environment Agency lacks some powers to act, such as civil enforcement powers which are often faster and cheaper than criminal prosecutions.51 The Environment Agency told us about its actions to intervene at an illegal waste site at Kidlington in Oxfordshire. Once the Environment Agency received “confirmed intelligence” about the illegal waste dumping, it told us that it was on site two days later and had made four arrests to date. However, it told us that the local community had seen suspicious activity on that site for many weeks previously, but the Environment Agency had not received that information, suggesting a major gap in its ability to collect intelligence on waste crime.52 We asked what needs to be done to improve co-operation with the police, local authorities and other relevant organisations such as the DVLA to prevent this happening in the future. The Environment Agency told us it is revising how it processes and triages intelligence on illegal waste sites and agreed that it should be better connected with local government and other partners.53 Supporting farmers and businesses to comply
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Government response AI summary
The government accepts the recommendation, setting a target implementation date of September 2027, and outlines a comprehensive plan to strengthen intelligence capabilities and inter-agency cooperation to tackle waste crime. This includes investing in advanced technologies, reviewing intelligence sharing, establishing a new Operational Waste Intelligence and …
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HM Treasury
21
Recommendation
74th Report - Environmental regulation
Accepted
Enforcement action is sometimes necessary, but it is costly for the regulators and may require court action.54 Enforcement is needed less often when advice, guidance and support help those businesses comply in the first place. Businesses often do not understand what is required of them, find it difficult to locate …
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Enforcement action is sometimes necessary, but it is costly for the regulators and may require court action.54 Enforcement is needed less often when advice, guidance and support help those businesses comply in the first place. Businesses often do not understand what is required of them, find it difficult to locate and use guidance, and say they do not always get sufficient support to comply which can increase the regulatory burden on them.55
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Government response AI summary
The government agrees and will review how farmers access regulatory guidance, develop a delivery plan by January 2027, consolidate water pollution regulations, publish a Farming Roadmap, and establish a new single water regulator pending a Water Reform Bill.
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HM Treasury
22
Recommendation
74th Report - Environmental regulation
Accepted
Defra told us about ways in which it expects the regulatory burden on farmers to improve in the coming months. It plans to set out a farming roadmap which will present the outcomes it wants to see and how it will measure these.56 It explained this will improve the clarity …
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Defra told us about ways in which it expects the regulatory burden on farmers to improve in the coming months. It plans to set out a farming roadmap which will present the outcomes it wants to see and how it will measure these.56 It explained this will improve the clarity of its approach to regulation and its new vision for farming.57 We asked Defra if it will 51 Qq 17 and 26 52 Q 17 53 Qq 13, 16 and 18 54 Q 26 55 C&AG’s Report, para 12 56 Q 23 57 Qq 43 and 65 16 allow some time to transition to new approaches, and Defra reassured us the farming roadmap would include timetables for farmers to achieve compliance with any regulatory changes.58
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Government response AI summary
The government accepts the recommendation, setting a target implementation date of January 2027. It plans to publish a Farming Roadmap this year, review how farmers access regulatory guidance by January 2027, and consolidate water pollution regulations, while also establishing a new, integrated water regulator to …
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HM Treasury
23
Conclusion
74th Report - Environmental regulation
Accepted
Defra will also introduce a single water regulator, which will take on the water-related regulatory functions of Natural England, the Environment Agency, Ofwat and the Drinking Water Inspectorate.59 Government intends to publish a transition plan for the reforms in 2026.60 Farmers will need to engage with this regulator in addition …
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Defra will also introduce a single water regulator, which will take on the water-related regulatory functions of Natural England, the Environment Agency, Ofwat and the Drinking Water Inspectorate.59 Government intends to publish a transition plan for the reforms in 2026.60 Farmers will need to engage with this regulator in addition to the ones it currently interacts with, which risks increasing complexity further.
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Government response AI summary
The government agrees and aims for implementation by January 2027. It will introduce a single water regulator by bringing together existing regulatory functions and plans to publish a Water Reform Bill to legally establish this new body.
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HM Treasury
24
Conclusion
74th Report - Environmental regulation
Accepted
The Environment Agency conceded that a lot of guidance is confusing, difficult to follow, and should be revised.61 It described how it had worked to improve how it engages with farmers, such as issuing additional guidance on preparing for an inspection, including video-based guidance and face-to- face discussions through tours …
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The Environment Agency conceded that a lot of guidance is confusing, difficult to follow, and should be revised.61 It described how it had worked to improve how it engages with farmers, such as issuing additional guidance on preparing for an inspection, including video-based guidance and face-to- face discussions through tours of farming communities.62 The Environment Agency told us it is reviewing whether the lowest risk category 1 and 2 permits could be replaced by an automatic registration system which would reduce the need for advice and guidance and could reduce the number of permits it issues by 10%.63 Defra told us that the Department for Business and Trade has started a review on the clarity of guidance available to businesses.64 Defra stated that it has identified the 10 most-used pieces of guidance and revised five of them.65
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Government response AI summary
The government agrees, acknowledging progress in supporting farms into compliance. Defra will review how farmers access regulatory guidance and develop a delivery plan by January 2027, consolidate agricultural water pollution regulations, and publish a Farming Roadmap.
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HM Treasury
25
Conclusion
74th Report - Environmental regulation
Accepted
Natural England told us it has made progress in improving its guidance through adding real-life case studies so that businesses can understand what they need to do to comply.66 Defra also explained it has piloted the use of AI tools such as chatbots to help farmers locate the right guidance …
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Natural England told us it has made progress in improving its guidance through adding real-life case studies so that businesses can understand what they need to do to comply.66 Defra also explained it has piloted the use of AI tools such as chatbots to help farmers locate the right guidance more easily.67 Natural England stated that it is also simplifying written guidance, and seeking to give its customers more autonomy and self-control, with less reliance on and interaction with Natural England processing. For example, it is seeking to give ecologists the accreditation to issue certain licences to customers on Natural England’s behalf, so that Natural England no longer needs direct involvement with the customer.68 A pilot of a ‘lead environmental regulator’ approach to developments involving multiple 58 Qq 60-61 59 Q 66 60 Defra, A New Vision for Water, CP 1490, 20 January 2026 61 Q 53 62 Q 55 63 Q 55 64 Q 24 65 Q 42 66 Q 56 67 Q 71 68 Q 57 17 regulators is also assisting Natural England in understanding the processes and requirements of other environmental regulators, and how these can be better co-ordinated for a single development.69 Nature Restoration Fund
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Government response AI summary
The government agrees with the committee's observation, acknowledging progress in improving guidance for farmers. Defra will conduct an internal review of how farmers access regulatory guidance, including digital tools, and develop a delivery plan by January 2027.
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HM Treasury
26
Conclusion
74th Report - Environmental regulation
Acknowledged
The Planning and Infrastructure Act is a wide-ranging reform of the planning system, intended to accelerate housing delivery and remove barriers to infrastructure development across England. The Act introduces the Nature Restoration Levy, a mechanism which allows developers pay into to the Nature Restoration Fund to discharge their environmental obligations …
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The Planning and Infrastructure Act is a wide-ranging reform of the planning system, intended to accelerate housing delivery and remove barriers to infrastructure development across England. The Act introduces the Nature Restoration Levy, a mechanism which allows developers pay into to the Nature Restoration Fund to discharge their environmental obligations when building, housing and infrastructure developments affect protected sites or species.70 This is an optional fund: developers can choose to do site-specific environmental mitigation on their development.71
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Government response AI summary
The government acknowledges the committee's description of the Planning and Infrastructure Act and the Nature Restoration Levy, clarifying that Biodiversity Net Gain and the Nature Restoration Fund are distinct yet complementary policies.
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HM Treasury
27
Conclusion
74th Report - Environmental regulation
Acknowledged
Defra told us that the Nature Restoration Fund is an innovative solution which will unblock developments and also deliver better outcomes for nature.72 It explained that the Fund will allow it to take a wider view of actions it can take to restore nature, rather than the current site-specific solutions …
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Defra told us that the Nature Restoration Fund is an innovative solution which will unblock developments and also deliver better outcomes for nature.72 It explained that the Fund will allow it to take a wider view of actions it can take to restore nature, rather than the current site-specific solutions which may not benefit the economy or nature as well as they could. Defra told us this approach will be faster and more certain for developers, and the pooling of money from developments allow it to do more ambitious restoration or protection of the environment.73
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Government response AI summary
The government acknowledges the Nature Restoration Fund, clarifying its role as distinct but complementary to Biodiversity Net Gain, focusing on unblocking developments stalled by environmental obligations while BNG applies more broadly to new housing and infrastructure projects.
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HM Treasury
28
Conclusion
74th Report - Environmental regulation
Accepted
The first step in implementing the Nature Restoration Fund is to produce Environmental Delivery Plans which will set out the nature and scale of mitigation needed in the location where a development happens.74 Natural England told us it is working on the first set of these plans.75 Government expects to …
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The first step in implementing the Nature Restoration Fund is to produce Environmental Delivery Plans which will set out the nature and scale of mitigation needed in the location where a development happens.74 Natural England told us it is working on the first set of these plans.75 Government expects to publish the first Environmental Delivery Plans in the Spring and Summer of 2026. Natural England will lead the implementation of the Fund. It will be responsible for preparing the plans, designing the Nature Restoration Fund, and recommending the rate at which the levy should be set.76
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Government response AI summary
The government agrees and states the recommendation is implemented, as the Nature Restoration Fund Implementation Plan was published in December 2025. Natural England will publish annual reports on NRF progress, and updates will be provided to Parliament on Environmental Delivery Plans.
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HM Treasury
29
Conclusion
74th Report - Environmental regulation
Accepted
Natural England is not meeting its current demands effectively, and new responsibilities it is taking on, such as responsibility for the Nature Restoration Fund, are substantial.77 Capacity and skills gaps are long- 69 Q 56 70 Planning and Infrastructure Act 2025, part 3, para 62 71 Planning and Infrastructure Act …
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Natural England is not meeting its current demands effectively, and new responsibilities it is taking on, such as responsibility for the Nature Restoration Fund, are substantial.77 Capacity and skills gaps are long- 69 Q 56 70 Planning and Infrastructure Act 2025, part 3, para 62 71 Planning and Infrastructure Act 2025, part 3, para 63 72 Qq 39-40 73 Q 30 74 Planning and Infrastructure Act 2025, part 3, paras 62-63 75 Q 38 76 Planning and Infrastructure Act 2025, part 3, para 82 77 Q 41 18 standing challenges for the regulators, with Natural England having shortages of some key skills and expertise.78 Natural England told us that it particularly struggles to recruit and retain people with planning skills.79 In February 2016, Natural England had 15 vacancies in its planning policy reform programme, a vacancy rate of 16% compared to its approved headcount.80 Natural England told us it is concerned about this gap given its new responsibilities from the Planning and Infrastructure Act.81
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Government response AI summary
The government acknowledges the committee's concerns about Natural England's capacity and skills gaps, stating it is addressing them through a coordinated reform programme. This includes significant investment in a cross-Defra digital planning reform programme focusing on improved casework management, data, and online guidance, and earmarking …
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HM Treasury
30
Recommendation
74th Report - Environmental regulation
Accepted
Statutory biodiversity net gain (BNG) is an existing scheme requiring that developers’ planning applications avoid harm to biodiversity as much as possible and more than offset any harms with biodiversity improvements. In this way, BNG has a similar overall objective to that of the Nature Restoration Fund. Defra has overall …
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Statutory biodiversity net gain (BNG) is an existing scheme requiring that developers’ planning applications avoid harm to biodiversity as much as possible and more than offset any harms with biodiversity improvements. In this way, BNG has a similar overall objective to that of the Nature Restoration Fund. Defra has overall responsibility for statutory BNG, and Natural England delivered and administered aspects of it on Defra’s behalf.82 Defra prioritised a quick launch of BNG, but has not achieved take-up targets for local authorities, who are the core delivery partners for the policy alongside Natural England.83 78 C&AG’s Report, paras 4.5 and 4.8 79 Q 78 80 Correspondence from Natural England, 13 February 2026 81 Q 78 82 C&AG’s Report, Implementing statutory biodiversity net gain, HC 729, 22 May 2024, para 6 83 C&AG’s Report, Implementing statutory biodiversity net gain, HC 729, 22 May 2024, paras 12 and 16-18 19
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Government response AI summary
The government accepts the recommendation, stating it has run a full lessons-learned exercise following BNG's delivery. The insights from this exercise have informed the implementation approach for the Nature Restoration Fund, with teams continuing to work closely to ensure alignment between the two programmes.
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HM Treasury