Philip Duffy, the Chief Executive of the Environment Agency has told the Government it will support a new approach to regulators and regulations to support economic growth.

Writing on 16^th January in reply to a letter dated 24 December 2024 from the Prime Minister, the Chancellor and the Secretary of State for Business and Trade, the EA chief said:

“The Environment Agency was created in 1995 with a dual mission to protect the environment whilst supporting sustainable development. Helping the Government sustainably deliver its mission-driven approach to growth is core to our purpose.

“We welcome this opportunity to contribute to the Government’s growth mission. Close collaboration between policy and operational experts will be essential to driving progress.”

Philip Duffy outlines the main channels through which the Agency’s work can contribute to growth as follows:

• We can play a key role in driving the acceleration of private sector investment by providing a more certain and predictable investment environment with lower transaction costs whilst maintaining high standards of environmental protection. Whether you want a permit for an industrial installation or planning consent for a new home, we are committed to ensuring our processes are clear, fast and responsive. As part of that we can help Government steer investments to places where there is clear environmental capacity, such as sufficient water availability. We will continue working closely with other regulators, including Natural England and Ofwat, to create simpler, more consistent regulation for business.
• We can be instrumental in transforming the UK into a centre for the technologies of tomorrow – particularly in areas such as clean energy and the circular economy – by setting out flexible and transparent regulatory regimes that can make the UK the best place globally for innovators. Our track record of working with partners on new approaches to carbon capture and storage and hydrogen production demonstrates how we can support this exciting opportunity.
• We can continue to keep people, businesses and property safe and help reduce the worst economic impacts which arise from climate change. The average insurance claim following Storms Clara and Dennis in 2020 was £32,000; and we estimate that across the winter floods that year, flood defences prevented over £9 billion in damages.

He continues by explaining that there are also three areas where Government in turn can help the EA to better support growth, which include increased flexibility, agility and a reduction of the complexity of the legislation it implements.

While the EA, would never advocate any lowering of environmental standards, he writes, it could streamline its approach to deliver outcomes for both the environment and the economy. There are opportunities to reduce barriers where there are competing demands and to act more quickly to support the innovations needed to meet the challenges of net zero, circular economy and growth.

He goes on to call on the Government for “strong support” as the EA reforms the current delivery model for many of its services, which rely on outdated systems and manual processes, commenting:

”We need to continue to work collaboratively with HM Treasury and DEFRA officials on the steps needed to resolve this. We cannot deliver the economy of the future with IT systems that have not kept pace with technological change - some of our systems date back to the 1990s.”

Duffy is also calling for Government help to put the Agency’s funding on a more certain footing through enabling cost recovery for its activities.

Over the next 12 months, the EA is committing to driving sustainable growth in the following five key areas:

1. Improving land use planning services
2. Making EA permitting services more efficient and effective for key growth sectors, such as water, net zero, and waste
3. Creating a more transparent data system for EA regulation
4. Supporting the Government’s approach to strategic spatial planning
5. Working with Government to reform the regulatory framework

The letter sets out in more detail the work the EA will carry out in these areas, including a newly created National Infrastructure Team to support key priority sites contributing to housing and clean energy priorities. The Agency will also introduce bespoke “tracked” services for the most complex applications, starting with a trial in the first quarter for applicants for major projects (nationally significant infrastructure projects but also major growth sites).

Later this year this year the EA will publish its next Long Term Investment Scenarios, setting out where the nation will need to invest if it wants to keep losses from flooding to homes and businesses constant.

He also tells the Ministers that 2025 will be “a critical year in the development of environmental law in the UK”, saying that there are “a number of changes that the EA would advocate to strengthen the regulatory framework.”