NAO maps out how to get more from green regulation

(by Karma Loveday)

The National Audit Office has set out a series of recommendations for green regulation as it is reformed.

In a new report, Environmental regulation, the NAO identified a number of challenges and hindrances that have held back regulation back to date. These included: 

• Defra has not done enough to support a strategic, joined-up approach rather than reacting to short-term, high‑profile issues.

• An overly cautious and risk-averse culture in Defra, the Environment Agency (EA) and Natural England (NE) has developed, in part due to the potential for legal challenge, and this has restricted some efforts to innovate and embrace new approaches.

• Defra and the regulators have not rolled out joint working widely, mainly due to systemic barriers including legislative requirements, data protection issues and cultural differences between regulators.

• The ability of EA and NE to regulate in a consistent and well-targeted way has been constrained in part by outdated IT systems. “While Defra is working to improve its digital technologies, it has been slow to modernise its systems and it is only part-way through a programme to do so, for which it received a further £300m in the 2025 Spending Review to invest between 2026-27 and 2028-29.” Skills shortages have also been a problem.

  
  

The NAO noted that Defra and its regulators had increased focus on improving regulation over the past two years, including by commissioning three major reviews (Corry, Cunliffe and an unpublished Optimising Delivery Review by Heather Hancock); a series of reform programmes; and joint-working projects, where they have similar areas of regulatory responsibility. It said the authorities had "made a good start, but the scale of change required is substantial and comes with risks and challenges”.

It went on to recommend a joined-up strategic approach as substantive reform is pursued. The NAO advised:

• Setting a plan for how existing change programmes and new reforms – including digital change – will link together, so they are planned and delivered in a coherent way.

• More effectively using information to target limited resources on the areas where there is greatest risk to the environment.

• Defining risk appetite to support a culture of change and innovation.

• Giving proper consideration to the skills and capacity required to deliver effective change.