Recommendation 11

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