13 Accepted

Defra’s approach to funding the regulators shows that Defra does not always appear to have...

Conclusion
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
Government Response Summary
Defra states it is already delivering a coordinated reform programme to address concerns about environmental regulation, drawing on various reviews and upcoming legislation. It will provide a written update within six months detailing progress on these reforms, which include regulatory governance and delivery changes.
Government Response
Accepted
HM Government Accepted
Defra is already delivering a coordinated programme of reform that addresses the Committee’s concerns about the effectiveness, coherence and resourcing of environmental regulation. This programme brings together the implementation of recommendations from the Corry Review, the Independent Water Commission, and the internal Optimising Delivery (Hancock) Review, alongside wider government regulatory reform activity, with a focus on prioritising reforms that will deliver the greatest impact. Key elements of this work are being taken forward through existing delivery vehicles, including the Water White Paper and forthcoming Water Reform Bill, as well as prioritised implementation of Corry Review recommendations. This includes reforms to regulatory governance and delivery, such as the Lead Environmental Regulator (LER) approach and the Defra Infrastructure Board. Together, these provide a clear view of how Defra is changing the regulatory environment, the legislative changes required and how delivery is being sequenced. To meet the intent of the Committee’s recommendation, the department will provide the Committee with a written update within six months, setting out progress across these reforms.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.3 yrs
Report published 25 Mar 2026