Environmental regulation in England is not operating as effectively or strategically as it should, risking poor environmental outcomes and weakening confidence in enforcement, according to a new report from the National Audit Office (NAO). The watchdog’s report, Environmental regulation, concludes that while regulators and Defra share clear objectives to protect the environment and minimise unnecessary burdens on business, weaknesses in data, skills, digital capability and strategic coordination are limiting their ability to regulate consistently and at scale. The findings are particularly relevant to the UK water and wastewater industry, which remains one of the most heavily regulated sectors and faces mounting scrutiny over pollution incidents, storm overflows and environmental performance.
Pressure on regulators
The NAO found that regulators are operating within a complex and outdated legal framework, while dealing with long-standing resource and skills shortages. Regulators often lack the high-quality data and modern IT systems needed to target the greatest environmental risks, increasing the likelihood that serious harms go undetected while compliant operators face unnecessary administrative burdens.
Relevance to water and wastewater companies
The report comes at a time of intense political and public focus on water company performance, particularly in relation to sewage pollution and river health. The NAO highlights that regulators’ limited resources can lead to inconsistent enforcement and delays, creating uncertainty for regulated industries and affecting investment planning and environmental improvements. The report also notes that a risk-averse culture within government and regulators has slowed innovation, acting as a barrier to faster adoption of new treatment technologies, nature-based solutions or digital monitoring.
Need for strategic reform
The NAO concludes that Defra has not yet set out a sufficiently clear, integrated strategy for reforming environmental regulation. The watchdog argues that improving regulation will require better use of data, clearer prioritisation of environmental risks and investment in digital systems and skills. The report makes several recommendations, including that Defra should work with regulators to set a plan linking existing change programmes and new reforms; update funding and performance mechanisms to emphasize addressing environmental harm; investigate new approaches to sharing data; and define its risk appetite to support a culture of change and innovation.
