10
Accepted
Environmental regulation is complex, with more than 3,000 separate pieces of legislation and more than...
Recommendation
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.
Government Response 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.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented. The Planning Reform Portfolio has been established to enable a coordinated, system-wide approach to work on planning reform, permitting and environmental regulation across Defra group. An example of this collaboration between Natural England and the Environment Agency is known as the Lead Environmental Regulator (LER) model, which provides a coordinated approach to advice and regulation, with a single lead regulator overseeing activity across all relevant bodies. It also includes an escalation route to a senior regulatory panel and, if needed, to Defra’s Infrastructure Board. Currently, the LER model is being piloted on five major projects, including Sizewell C. Both Natural England and the Environment Agency are also part of Defra’s Group Corporate Services and benefit from the shared service model for Corporate IT. As part of Defra’s Service Transformation programme, the department is working to identify common capabilities which can be shared including systems for Permitting and Licencing, Grants and Monitoring.
Source
Committee
Public Accounts Committee
Inquiry
Environmental regulation
Report
74th Report - Environmental regulation
25 Mar 2026
HC 1687
Addressee Bodies
HM Treasury
Timeline
Recommendation age
0.3 yrs
Report published
25 Mar 2026