Recommendation 3

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.