Conclusion 13

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