The House of Commons Public Accounts Committee (PAC) is not convinced that environmental regulators and government can fulfil their existing responsibilities while delivering ambitious reforms.

In a new report, the PAC warns that the current regulatory system requires substantial changes, and is not working as well as it should to support nature recovery or economic growth.

The report highlights the rising problem of illegal waste dumping, and warns that the widespread and increasing issue of illegal sites has surpassed the Environment Agency’s (EA) powers.

Restricted to the lengthy and expensive route of criminal prosecutions without the option of enforcing civil powers against illegal sites, the EA also has had problems with intelligence gaps on this type of criminality. It responded swiftly to illegal dumping at Kidlington in Oxfordshire once it had received “confirmed intelligence” of the problem, but local bodies had been aware for weeks before. The PAC is calling on the EA to work more effectively with other bodies such as the police and local authorities, an ability it currently lacks.

Defra, the Environment Agency and Natural England are changing the way they regulate in response to 149 recommendations from multiple independent reviews. The report finds that the large volume of change activity does not appear well-coordinated, and is sceptical that regulators have the resources and skills to manage the upcoming changes. The PAC is seeking a detailed plan from Defra showing how it intends to change the overall regulatory environment, and what assurance it has that regulators have the necessary resources.

The PAC also believes that Defra should take the opportunity presented by the changes in water regulation to explore merging the regulatory responsibilities of Natural England and the EA. This could enable the establishment of a single organisational culture which balances protection and enhancement of nature and the environment with supporting economic growth. The PAC’s inquiry found that currently a lack of strategic direction from Defra limits regulators’ ability to plan coherently or target resources effectively.

The report further highlights government’s Nature Restoration Fund, designed to raise funds and commission projects to improve the environment when building and infrastructure developments affect protected sites or species. The PAC has concerns around how the Fund will balance the need for development with protecting nature and biodiversity, and the PAC will be keeping a watching brief on the Fund as its implementation progresses.

“UK has obvious and glaring problems with how environmental regulation is delivered”

Sir Geoffrey Clifton-Brown, Chair of the Public Accounts Committee, said:

“The UK has obvious and glaring problems with how environmental regulation is delivered. This, tragically, is a given. The public does not need our Committee to remind it of ongoing issues with illegal waste dumping and sewage pollution of our rivers. nor do farmers need reminding of the complexity of the systems within which they are obliged to work. This is why regulators are drowning in recommendations from multiple reviews, and why we can expect a new water regulator. Our report finds that the current position that regulators are not sufficiently resourced to follow this multiplicity of recommendations, while still carrying out their responsibilities towards the environment.

“One obvious solution to reduce the complexity which government should consider would be a merging of the responsibilities of Natural England and the Environment Agency (EA). Whilst they do have slightly different roles in regulating the environment, some of their larger functions, such as monitoring the planning system and taking enforcement action significantly overlap. A single culture would be able to more coherently face outwards towards sectors that need to engage.

“It is welcome to hear the government will be attempting to arm the EA and councils with greater powers of enforcement, but without deeper co-operation with police and local authorities, illegal waste is still liable to be an out-of-control plague on our communities. The Nature Restoration Fund is also in our Committee’s sights in the future, as a potentially innovative scheme but with real risks of presenting another layer of obstacles for responsible development. Our inquiry finds an overall unfocused picture for environmental regulation. The government must work to bring it into sharp focus.”

The PAC report warns:

“Defra does not seem to fully appreciate the scale of the challenge that lies ahead. Given the regulators struggle to carry out their current roles effectively, we are not convinced they have the resources and skills to manage the upcoming changes, despite their assurances.”

The Committee is recommending that within six months of this report, Defra should publish a detailed plan which sets out:

• how it intends to change the overall regulatory environment
• how it is implementing the 149 recommendations
• what assurance it has that regulators have the resources they need
• when the change will be completed.

"Defra sees no overall benefit in merging regulatory responsibilities of Natural England and EA, despite forthcoming changes to water regulation"

The PAC is calling for the plan to include a clear statement of what legislative change is needed and when.

The report also says that Defra has not set out precisely what environmental regulation should achieve and how the regulators should be set up to achieve this. Regulators currently operate across a complex landscape, with overlapping responsibilities, differing cultures and inconsistent approaches. Yet Defra has not set out clearly what environmental regulation is intended to achieve, nor how regulators should be configured to deliver those outcomes.

“ Defra sees no overall benefit in merging the regulatory responsibilities of Natural England and the Environment Agency, despite forthcoming changes to water regulation presenting an opportunity for further wide-ranging reform,” the report says.

As a first step towards developing a coordinated plan, the Committee is recommending that Defra should set out a clear vision for environmental regulation with a focus on what matters and what makes the most difference

In addition, Defra should take the opportunity presented by the changes in water regulation to explore the merits of bringing all its regulatory functions together to improve efficiency and enable the establishment of a single organisational culture which balances protection and enhancement of nature and the environment with supporting economic growth.

Click here to download the report in full