Source · Select Committees · Public Accounts Committee
Recommendation 3
3
Defra and the regulators are still a long way from where they need to be...
Conclusion
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.
Government Response
Response Pending
HM Government
Response Pending
The government agrees with the Committee’s recommendation. Recommendation implemented Natural England has assigned a Chief Officer with responsibility for Digital and Data who is leading further development of Natural England's digital and data capability and capacity in collaboration with the Digital Data Technology Security (DDTS) corporate service in Defra. At present, the Environment Agency Director of Service Transformation, who reports into the Executive Director of Strategy Transformation and Assurance, fulfils this role; being accountable (along with DDTS) for the management of the Environment Agency’s technical and digital estate, service modernisation, strategic change management and the Chief Data Office capability (CDO). Defra Group operate a federated model, along with other Corporate Service activity, with DDTS services delivered centrally on behalf of Defra and its ALBs. This includes the Environment Agency, Natural England, Rural Payments Agency, Marine Management Organisation and the Animal and Plant Health Agency. The government agrees with the Committee’s recommendation. Recommendation implemented With regard to planning, Defra received £100 million across Spending Review 2025, part of which will fund a cross-Defra digital planning reform programme. The programme focuses on end-to-end service improvements across Natural England, the Environment Agency and the Forestry Commission. Key investment areas are: • Casework management: building modern aligned casework management systems cross- group. • Data: building a common data model cross-group to facilitate joined-up working. • Geospatial mapping capability and data alignment. • Online guidance and a single front door. Digital work will also consider ALB operating models. Re-use of common components will be utilised wherever possible to create efficiencies and streamline services. Year 1 spend prioritises stabilisation and shared capabilities that unlock service transformation, aligned with MHCLG’s Digital Planning direction. Defra continues to invest in its wider digital technology to provide excellent customer services, deliver savings and efficiencies in its operations and keep core IT services operational and secure. Defra’s digital and technology spend for 2026-27 totals approximately £860 million. Of this, approximately £460 million is earmarked for digital transformation to provide excellent customer-centric services. A significant amount of this transformation investment is being directed towards Defra’s regulatory activities, for example: • £55.1 million to continue to deliver transformation across the regulation of the waste packaging and recycling sectors. • £39.7 million to invest in digital services to deliver water reform (including digital investment of £27.1 million for the Regulatory Services Platform, Environmental Monitoring Platform and Environment Agency Cyber Security and an estimated £10.6 million to enable the creation of a new water regulator). • £15.8 million to begin the delivery of a joined-up planning consultation service encompassing all regulatory bodies involved in the service. • £5.2 million for a new digital service for the Nature Restoration Fund. • An estimated £8.4 million for investment in other digital services to support Environment Agency’s and Natural England’s regulatory activities.