Policy paper

Strategic Policy Statement for the Environment Agency

Published 12 March 2026

Applies to England

Introduction

This is the first Strategic Policy Statement (SPS) published for the Environment Agency (EA), the government’s independent regulator for activities that impact the environment in England. The EA is also responsible for managing the government’s flood defence programme and responding to environmental incidents, such as flooding and pollution.

This is a non-statutory SPS. It is intended to complement the EA’s statutory objectives and duties (Annex A), most notably its principal aim in the Environment Act 1995, section 4(1) “to protect or enhance the environment, taken as a whole, as to make the contribution towards attaining the objective of achieving sustainable development”. It does not alter any of the EA’s statutory objectives or duties, or any other legal obligations or duties whether contained in statute or otherwise.

The SPS has 2 functions. Firstly, it sets out the Secretary of State’s expectations for the EA in terms of how it delivers on both environmental protection and economic growth. Secondly, it is designed to be embedded into decision-making, to guide the EA’s use of discretion and ensure the effective delivery of these priorities.

The expectations set out in this SPS build on actions the EA has already taken and illustrate how it can go further to support delivery of the government’s strategic priorities. The legal basis and effectiveness of this SPS will be kept under review by the Secretary of State.

The Secretary of State will soon issue the EA with a ministerial direction, specifically instructing the EA on how to carry out certain duties to support water reform. This specific direction will complement the priorities set out in this SPS.

Government strategic priorities

The government’s foremost priority is delivering economic growth and regulators are expected to support that objective through their work. These outcomes are linked to relevant key performance indicators (KPIs) in the Regulator KPI Dashboard which support transparent measurement and accountability. In due course, we will publish ambitious and measurable goals to help define how the EA is successfully supporting economic growth. The Secretary of State expects the EA to support economic growth as a cross-cutting priority, integrated into the following strategic priorities:

• enhance the performance and efficiency of regulatory services
• promote healthy air, land and water and support nature’s recovery
• support transformation of the water sector
• increase resilience to flooding and drought

This section details the substantive outcomes that the EA is expected to achieve in the context of each strategic priority, and the Secretary of State’s expectations about how the EA will optimise and transform its business to deliver its outcomes efficiently. The specific expectations set out below are intended to highlight the Secretary of State’s key areas of interest but do not constitute an exhaustive list. The outcomes set out below are also linked to relevant performance KPIs for the EA, as set out in the Regulator KPI Dashboard.

In weighing the risks and opportunities in casework management, the EA should generally prioritise the achievement of these outcomes overall, working alongside other regulators. For example, where uncertainty or conflicting options exist the EA should balance its risk judgements in favour of strategic environmental solutions. Supporting economic growth is a cross-cutting strategic priority, integrated into each:

Enhance the performance and efficiency of regulatory services

The EA’s work significantly contributes to the government’s growth mission, particularly delivering its ambitious targets for 1.5 million homes in England and fast-tracking planning decisions on at least 150 major economic infrastructure projects. This includes the critical infrastructure that will be required to deliver the Clean Power 2030 Action Plan. Improved permitting and planning processes will accelerate delivery of housing and infrastructure, unlocking private investment and supporting productivity growth.

The government’s growth mission spans housing, infrastructure, and growth-driving sectors identified in the Industrial Strategy, including advanced manufacturing, clean energy industries, life sciences, digital and technologies and port-related activities. The EA is encouraged to consider its role in enabling these sectors by providing proportionate, timely regulation and supporting innovation in areas such as water efficiency and waste management.

To support this objective, the government expects the EA to embed a change in culture that supports proportionate, outcomes focused decision-making which exercises maximum use of constrained discretion (see Strategic Use of Discretion section) to ensure its advice and decisions consistently enable and support economic growth where its statutory and regulatory framework allows for such discretion. The EA should ensure its case work supports flexible, proactive and legally defensible decision-making in pursuit of this objective.

The Secretary of State expects the EA to:

• enhance the overall performance and efficiency of its core regulatory services – crucially its environmental permitting and planning services – to support timely and proportionate decision making
• aim to reduce decision times for processing permit applications across all the sectors it regulates, including via a new priority tracked service for complex applications for major infrastructure projects and growth sites, in line with its commitment in the Regulation Action Plan
• explore streamlined, risk-based permitting approaches, working with industry to enable critical infrastructure while safeguarding environmental standards and where possible reducing costs
• prioritise recruitment, training and retention of appropriately skilled staff while also making digital improvements to maintain high service levels. This should include ensuring sufficient specialist and senior resource is in place to support on priority projects and delivering digital transformation to maximise efficiencies and improve casework response times, including to deliver on its statutory duty to respond to planning applications from Local Planning Authorities within 21 days and pre-application enquiries from developers to agreed timescales
• support early identification of site-based and wider downstream or cross-boundary environmental issues to ensure these are considered at the outset of a project in its role as a statutory consultee under the Town and Country Planning Act 1990 and Nationally Significant Infrastructure Projects under the 2008 Planning Act
• work with the relevant water supply and sewerage undertakers and other regulators to provide an agreed and evidenced assessment of current and future water supply and sewerage capacity to the local planning authority where the EA is minded objecting to a spatial development strategy, a local plan, or a planning application on the grounds of insufficient water supply or wastewater treatment capacity
• champion and embed the programme of new approaches to regulation that support economic growth, including those identified by the Corry Review. This includes exploring an earned autonomy framework for trusted partners across its regulatory services and supporting the successful rollout of the Lead Environmental Regulator model
• deliver its commitments in the HM Treasury’s Regulation Action Plan, including through use of the proposed new permitting exemptions powers to take risk-based decisions so environmental permitting is proportionate, efficient and transparent for businesses;
• support the government’s ambition to reduce administrative burdens on businesses by 25%, by ensuring that regulatory processes are proportionate and minimise unnecessary administrative requirements
• ensure carbon reduction in operations
• support deployment of data‑centre capacity as nationally significant digital infrastructure by providing timely, proportionate regulatory services and early issue identification

Promote healthy air, land and water and support nature’s recovery

Healthy environments support economic growth by improving food security, limiting the cost of environmental harms and benefitting the tourism and recreation sectors which contribute significantly to rural economies. The government is planning to publish a waste crime action plan in March 2026 signalling the priority given to tackling waste crime and the EA should ensure its commitments are delivered and continue to work collaboratively with Defra on this priority area.

Additionally, the government is delivering on our climate ambitions including overall delivery of net zero, maximising the economic opportunity the transition presents and also pursuing adaptation measures to protect homes, livelihoods, and economic growth against the impacts of our changing climate.

The EA should seek to support delivery of decarbonisation policies, including methane reduction and manage issues such as pollution and nature degradation through early identification and prevention for the public’s benefit. The EA should also make use of innovative technologies to achieve their aims against this priority.

The Secretary of State expects the EA to:

• work with farmers, landowners and local and national partners to protect and restore England’s waters and landscapes, promote healthy soils, encourage biodiversity and reduce greenhouse gas emissions
• support farmers in complying with relevant regulations, including Farming Rules for Water, to support nature’s recovery
• continue to crack down on waste crime and bring robust enforcement action against those who damage the environment, including stopping illegal waste activity and clearing any backlog of cases
• take a risk-based approach to monitoring compliance and make monitoring information more accessible to public scrutiny
• implement regulatory reforms in waste collection to support the move to a more circular economy, and support delivery of the forthcoming Circular Economy Growth Plan
• work with industry to support the transition to cleaner technologies and reduce pollution to air, land and water. This includes the development and application of standards for new technologies and industries, ensuring that emerging high toxicity and persistent pollutants such as per- and polyfluoroalkyl substances are effectively addressed through environmental regulation

Support transformation of the water sector

The government has published its A new vision for water: white paper, setting out its vision for reform of the water sector and wider water system to make sure it delivers our most critical outcomes – safe and secure supplies of water, a protected and enhanced environment, a fair deal for customers and investors – in a way that is more efficient and integrated. This will drive growth through improving the resilience of our water infrastructure, reducing water leakage, lowering costs for businesses and households, and supporting growth in water technology markets.

The white paper will be complemented by a transition plan later in 2026, setting out how the government will implement these reforms at pace, including through the set-up and planning for the 2029 price review. Until such time as a single water regulator is established, the EA has a fundamental role to play to support these reforms, as well as to support water companies to deliver the investment agreed through Ofwat’s Price Review 24.

The Secretary of State will therefore issue the EA with a direction specifically instructing them on how to carry out its duties to support the water reform programme. This ministerial direction will have legal force and reflect the contents of the transition plan. This direction will align with the priorities and approach to decision-making set out in this SPS but will provide more water-specific detail.

The Secretary of State expects the EA to:

• carry out its regulatory functions and enforcement responsibilities until the single water regulator is established
• increase join-up with Ofwat, the Drinking Water Inspectorate and Natural England, in collaboration with the department, working with the new water regulator once established
• support the 2029 price review, in line with the changes that will be set out in the transition plan
• streamline activity, as will be set out in the transition plan, and assess and take into account the impact of change on the water industry within proper exercise of its functions and delivering reforms
• make full use of its increased funding and stronger powers from the Water (Special Measures) Act 2025 to tackle any poor performance of water companies

Progress under the Water (Special Measures) Act 2025 will be tracked and reported through the department’s performance framework, with indicators signposted in the Regulator KPI Dashboard.

Increase resilience to flooding and drought

Strengthening resilience to flooding and drought will protect economic assets and avoid disruption to supply chains thereby safeguarding growth and regional productivity. The EA has a crucial role in effectively delivering the government’s largest ever floods programme to protect businesses, communities and infrastructure from flooding. The EA should make use of innovative technologies to achieve their aims against this priority and pursue carbon reductions across the floods programme where possible.

The Secretary of State expects the EA to:

• optimise outcomes across its investment and maintenance programmes to maximise benefits of the investment in flood defences worth £10.5 billion to 2036
• invest in projects based on the government’s new funding rules, with a greater focus on maintenance of assets, support for deprived communities, natural flood management, and incentivising external contributions to boost taxpayer funding
• refresh its statutory flood management strategy to align with the government’s policy priorities

• support the Floods Resilience Taskforce, including co-leading its work on improving flood warning systems, including making them easier to navigate for road closures, public awareness and community resilience

• deliver against key responsibilities including flood incident response, flood forecasting and warning, development planning advice, and support for local authorities with their flood and coastal responsibilities
• enforce reservoir safety requirements, deliver reservoir safety reforms, and support improvements in reservoir capacity including supporting farmers with new and existing reservoirs
• secure the proper use of water resources, including planning, monitoring, reporting and acting with key stakeholders to mitigate and reduce the impacts of dry weather and drought

The EA should report climate adaptation actions to the Secretary of State as per the Adaptation Reporting Power and support development and implementation of the fourth National Adaptation Programme due in 2028.

Operating model

The EA is expected to modernise its operations, taking full advantage of new opportunities offered by artificial intelligence and other new technology to deliver on these policy priorities. This includes investing in digital solutions and Artificial intelligence (AI) capability to deliver service improvements and efficiencies, transformation in casework and better data sharing, supporting delivery of the AI Opportunities Action Plan.

The EA should look to make best use of the funding it receives from the core department and income received from those it regulates supporting delivery of key digital improvements. It should also optimise its Regulatory Services programme to deliver benefits and common capabilities across Defra group. The EA should also report annually on AI‑enabled innovation and growth, including key actions, outcomes, transparent metrics, and lessons learned.

Taken together this should enable the EA to become an increasingly agile and responsive regulator.

Strategic use of discretion

The Secretary of State expects the EA to use its discretion to ensure advice and decisions align with its strategic priorities, while acting in accordance with the relevant statutory and regulatory framework.

This is the concept of “constrained discretion” which can help regulators focus on delivering outcomes over process. The EA should focus on resetting its organisational culture to help enable this change in approach.

To support the proper application of constrained discretion, the Secretary of State expects the EA to:

• establish governance of constrained discretion through its pre-existing frameworks, specifically internal guidance and oversight processes. This should build on the principles set out below and clarify how to manage risks when making decisions
• train decision-makers on the application of constrained discretion principles in practice
• ensure accountability by recording decision-making and following appropriate review processes. In line with the Good Regulatory Practice transparency principle, the Secretary of State expects the EA to have open and honest data-driven discussions with Ministers about delivery and performance, including any barriers to progress, whilst escalating issues as needed through departmental sponsor teams. The EA should take account of any priorities set by the Secretary of State throughout the year, including during routine delivery and performance discussions

Constrained discretion principles

In exercising constrained discretion, the EA is encouraged to have regard to the following principles:

Strategic alignment for the long term

The EA decision-making should align with the Defra Secretary of State’s strategic priorities and the government’s wider objectives as set out in the Plan for Change. The EA should also align with Defra-wide documents such as the Defra group Outcomes Framework, using this to focus delivery and assure progress towards achieving long-term collective goals. This will help ensure consistency across regulators and supports a unified approach.

The EA should prioritise successful delivery of strategic priorities in the long term. In doing so, the EA should consider the current and future needs of people and the environment.

Joined-up and place-based approach

Regulatory activities should be informed by an understanding of the local context, wider environmental conditions, and place-based priorities. Where appropriate, the EA should balance the needs of individual sites in the context of the wider local environment they sit within. The EA should also consider where areas have been empowered through devolution to develop locally led solutions that deliver on national priorities, for example Local Nature Recovery Strategies, Local Growth Plans and Regional System Planning groups.

In all cases, the EA is expected to collaborate with other relevant regulators, planning bodies and government departments to ensure joined-up regulatory decision-making which best serves local communities. This includes aligning timetables, sharing relevant data, and conducting reviews in parallel where appropriate.

Supporting innovation

The Secretary of State expects the EA to work with its stakeholders to find creative solutions and give pragmatic support to achieve good outcomes for nature and for growth, whilst operating within the existing legal framework. This could involve testing new solutions where an ‘out of the box’ solution does not fit the context and ensuring that the EA’s science-based approach reflects the latest findings and innovations.

The EA is also encouraged to champion innovation by engaging with emerging sectors to identify regulatory approaches that enable growth while protecting the environment, including making use of tools such as regulatory sandboxes where this is appropriate to test new approaches.

Defra will support the EA in these efforts, through sharing work between the organisations’ chief scientists and through statements such as these which set clear expectations.

Constrained discretion should be used to build cases that inform future policy and legislative changes.

Annex A: Overarching regulatory duties

The EA’s discretion must be exercised within scope of The EA’s statutory powers and duties, as primarily set out in the Environment Act 1995.

In addition to discharging its specific statutory duties, the EA must have regard to good regulatory practice principles in all relevant decision-making. It must also comply with the UK government’s Regulators’ Code and Growth Duty.

Good regulatory practice principles

The EA continues to be bound by the statutory principles of good regulatory practice and must exercise its discretion in accordance with these. The principles are transparency, accountability, proportionality, and consistency.

The Regulators’ Code

The Regulators’ Code provides a framework for delivering regulation that is transparent and suits the needs of both regulators, and regulated entities such as businesses, organisations, institutions, or individuals. The principles of constrained discretion have been developed with regard to the code.

The EA is already subject to the code and should continue to account for it when developing guidance and operational procedures. The code stipulates that regulators should:

• carry out their activities in a way that supports those they regulate to comply and grow
• provide simple and straightforward ways to engage with those they regulate and hear their views
• base their regulatory activities on risk
• share information about compliance and risk
• ensure clear information, guidance and advice is available to help those they regulate meet their responsibilities to comply
• ensure that their approach to their regulatory activities is transparent

The Growth Duty

The Growth Duty requires regulators to have regard to the desirability of promoting economic growth, alongside their core statutory functions. The Secretary of State expects Defra’s regulators to apply the duty in a way that supports sustainable growth, innovation and productivity, while maintaining high standards of environmental and public protection.

The EA is already subject to the duty and should reflect this in its strategic planning, decision-making processes, and performance reporting. This includes actively considering how regulatory decisions enable economic growth, such as accelerating housing delivery, supporting clean energy industries, and facilitating innovation in growth-driving sectors.

The EA should understand the impacts of its decisions on businesses and engage proactively with stakeholders to understand barriers to growth.

The EA is committed to a number of KPIs aligned with the investment, infrastructure and planning pillar of the government’s growth mission which are set out in the Regulators KPI dashboard.