Spending watchdog warns Defra’s weak oversight of regulation is putting green targets at risk

Defra needs to get a better handle on regulation and how it can be used to achieve environmental outcomes, according to the National Audit Office (NAO).

In a new report, Regulating to achieve environmental outcomes, the NAO scrutinised whether Defra is using regulation effectively in pursuit of its environmental agenda as set out in the 25 Year Environment Plan and more recent Environmental Improvement Plan and associated targets.

It found green improvements are being put at risk by weaknesses in Defra’s oversight of regulation. According to the report, Defra remains at an early stage in understanding how existing regulations affect its plans. Work is still underway to set outcome reporting for each of the statutory targets, plus the Department had a backlog of 63 Post-Implementation Reviews as of March 2023, “limiting its insight into how well regulation is working or the burden on business. The department also has limited data on the effectiveness of its regulation to inform decisions about future activities and where to prioritise resources.”

Moreover, there are more than 30 bodies involved in regulating for environmental outcomes, some of which are struggling. The NAO pointed out: “Both the Environment Agency and Natural England face workforce challenges. In February 2023 the EA had vacancies of around 600 full-time equivalent posts, 5% of its planned staffing. Natural England has reduced its vacancy gap from over 250 in September 2022 to one in February 2023 but recognises that it has a significant risk around capability.” There are backlogs in permit applications and delays in developing plans to administer new waste regulations already, and this is exacerbated by demands to increase activities in areas such as monitoring and inspections to respond to failures on water quality.

The NAO recommended that Defra sets out a detailed operational plan for how it will achieve the goals of the Environmental Improvement Plan, including the role of regulation alongside other policy interventions, by December 2024. By the same date, the NAO recommended the department has a better administrative handle on its Post-Implementation Reviews and has cleared the current backlog.

Gareth Davies, the head of the NAO, said: “If the government is to achieve its ambitious environmental goals, Defra will have to be much clearer on the detailed changes to regulation required as part of its overall approach.”