11
Accepted
Defra’s approach to environmental regulation has largely been reactive rather than based on a clear...
Recommendation
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
Government Response Summary
The government agrees and states the recommendation has been implemented by publishing Strategic Policy Statements for the Environment Agency and Natural England on 12 March 2026, setting out strategic priorities and expectations for regulators.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented. Defra has set out a clear vision for environmental regulation through the Strategic Policy Statements (SPS) for the Environment Agency and Natural England published on 12 March 2026. These set out the government’s strategic priorities for each regulator in terms of how they deliver on environmental protection, nature recovery and economic growth. They also set out the government’s expectations that each regulator will exercise constrained discretion, ensuring strategic decision-making is prioritised over process compliance.
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