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Public Accounts Committee publishes report saying Defra does not have necessary resources

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The Public Accounts Committee (PAC) has released a new report on environmental regulation. The report states that “[e]nvironmental regulation should protect the environment and nature from pollution and harm, while also supporting business and economic growth” but also say that “the regulatory system requires substantial changes. Defra and its main environmental regulators, the Environment Agency and Natural England, have started taking steps towards reforms in response to multiple independent reviews. However, there is a long way still to go, and the regulators need clarity from Defra if they are to discharge their duties effectively.”

The report goes on to say that “Defra does not yet have a clear vision for what the right regulatory system should be, what it is aiming to achieve through regulation and how it will do so”.

We agree with the recommendation in the report that Defra needs to set out a clear vision for environmental regulation. Without this there is a real risk of inefficient and fragmented delivery, inconsistent decision-making and, most importantly, poorer environmental outcomes.

Similar to the findings of the National Audit Office report published in January 2026 that said that Defra does not have the resources (including funding, expertise and IT systems) to undertake its regulatory functions, this new PAC report says that Defra and its agencies do not have sufficient resources and capability to implement the significant changes to environmental regulation brought forward by Government, for example, the Nature Restoration Fund. The report notes that “[c]apacity and skills gaps are long-standing challenges for the regulators, with Natural England having shortages of some key skills and expertise”. These are added burdens on Natural England, including the development and delivery of Environmental Delivery Plans, on top of existing issues, for example, with protected species licencing.

The report goes on to say that Defra implemented Biodiversity Net Gain (BNG) before everything was in place to ensure its success. CIEEM notes that BNG was a long time coming but that Government has not fully engaged with solutions put forward by the ecological profession. Government’s current oscillating on BNG policy is undermining the system, not to mention private nature investment.

The report raises the suggestion of merging Natural England and the Environment Agency. CIEEM does not have a strong view on whether or not to merge the organisations but we suggest that this would be an unnecessary distraction at this time. More importantly, the agencies need investment in resources, funding, expertise, and increased pay to boost retention – which are all rightly pointed out by the report.

The key takeaway from the report is that Defra and its agencies need more resources to perform its current functions, and will need even more to perform those that are being added. Government must not shy away from the need to properly resource these agencies. To not do so would be to fail not just nature itself, but the communities and economies that depend on it.