16 Accepted

The Environment Agency told us it had a large legacy IT problem in 2020, with...

Conclusion
The Environment Agency told us it had a large legacy IT problem in 2020, with 700 IT systems in total. It told us it had modernised its systems and closed down 350 applications. It had also improved the transparency of its information by publishing all its reports on water quality. However, it acknowledged it has issues still to address, for example replicating this transparency in other sectors such as waste.39 Natural England has received limited funding for digital transformation of its core regulatory services in recent years.40 It told us it hopes future investment will allow it to mirror the digital improvements at the Environment Agency. It plans to invest in customer-facing regulatory systems which are more user-friendly and should speed up processing times, and to make use of AI when handling data.41
Government Response Summary
The government agrees and states the recommendation is implemented. It details £100 million in funding for a cross-Defra digital planning reform programme, including specific investments for casework management, data, online guidance, waste regulation, and water reform.
Government Response
Accepted
HM Government Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented. With regard to planning, Defra received £100 million across Spending Review 2025, part of which will fund a cross-Defra digital planning reform programme. The programme focuses on end-to-end service improvements across Natural England, the Environment Agency and the Forestry Commission. Key investment areas are: • Casework management: building modern aligned casework management systems cross- group. • Data: building a common data model cross-group to facilitate joined-up working. • Geospatial mapping capability and data alignment. • Online guidance and a single front door. Digital work will also consider ALB operating models. Re-use of common components will be utilised wherever possible to create efficiencies and streamline services. Year 1 spend prioritises stabilisation and shared capabilities that unlock service transformation, aligned with MHCLG’s Digital Planning direction. Defra continues to invest in its wider digital technology to provide excellent customer services, deliver savings and efficiencies in its operations and keep core IT services operational and secure. Defra’s digital and technology spend for 2026-27 totals approximately £860 million. Of this, approximately £460 million is earmarked for digital transformation to provide excellent customer-centric services. A significant amount of this transformation investment is being directed towards Defra’s regulatory activities, for example: • £55.1 million to continue to deliver transformation across the regulation of the waste packaging and recycling sectors. • £39.7 million to invest in digital services to deliver water reform (including digital investment of £27.1 million for the Regulatory Services Platform, Environmental Monitoring Platform and Environment Agency Cyber Security and an estimated £10.6 million to enable the creation of a new water regulator). • £15.8 million to begin the delivery of a joined-up planning consultation service encompassing all regulatory bodies involved in the service. • £5.2 million for a new digital service for the Nature Restoration Fund. • An estimated £8.4 million for investment in other digital services to support Environment Agency’s and Natural England’s regulatory activities.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.3 yrs
Report published 25 Mar 2026