Environment Agency business plan 2026 to 2027

Introduction

This business plan lists our priorities for the 2026 to 2027 financial year. It outlines how we’ll work towards the goals in our corporate strategy, EA2030: change for a better environment. It sets out how we’ll:

• support wider government commitments
• deliver new legislative requirements
• prepare for emerging environmental pressures

We’re changing how we work to help people and nature thrive today – and to get ready for what’s next.

We’ll report our performance against this plan quarterly through our corporate scorecard on GOV.UK. 

About the Environment Agency

The Environment Agency has a vital dual mission to protect and enhance the environment and support sustainable development. Our staff come from many professional backgrounds – regulators, engineers, ecologists and incident responders. And we work right around the country, with rivers and coasts, at flood defences, waste sites, wastewater works, incinerators, factories and nuclear facilities. But what unites our diverse organisation is our focus on actions, backed by evidence. Our remit primarily covers England, but our influence and collaboration extend across the UK and beyond.

England has approximately:

• 13 million hectares of land that supports communities, agriculture and industry while facing changing weather patterns
• 22,000 miles of rivers to provide our growing water demands, while supporting habitats and recreation
• 3,100 miles of coastline that supports marine life, leisure and trade, despite pressure from storms and erosion

It’s an important job, and too complex to tackle alone. We collaborate with Defra and other government departments, communities, the private sector, environmental non-government organisations and many other partners. But we operate independently, led by science and public duty, and always using public money wisely.

We play a central role in implementing the Environmental Improvement Plan.

Foreword

The Environment Agency (EA) was created in 1996, to protect the environment and support sustainable development. Thirty years later, this purpose remains vital. The thousands of highly skilled staff who work here – environmental officers, ecologists, engineers, scientists, regulators, prosecutors and many others – are our greatest asset, using their expertise to protect England’s ecology and economy.

In 3 decades, there have been many successes. From 2000 to 2024, the industrial activities we regulate saw:

• a 55% reduction in greenhouse gases
• an 84% reduction in nitrogen oxides
• a 97% reduction in sulphur oxides
• a 68% reduction in particulates

In the last 30 years, rivers have seen reductions in biochemical oxygen demand and phosphorus pollution of around 85%. 

Since 2015, new flood defences increased flood protections to more than 455,000 homes. In 2023, Storm Babet caused around £481 million of direct damage, but long‑term investment in flood protection meant that nearly £9 billion of damage was avoided. The £200 million Leeds Flood Alleviation Scheme, completed in 2024, now protects:

• more than 4,000 homes
• over 1,000 businesses
• around 33,000 jobs

Over the next decade, the scheme is expected to support £774 million in regeneration and help create more than 3,000 new jobs.

Despite progress, we know there is much more to do. Waste crime continues to damage communities, and a step change is needed to push criminals out of the waste sector. We can see from our work with the water companies how much further they need to go to ensure compliant wastewater treatment and reduce sewage spills. Across the whole environmental system, we need to accelerate efforts to reduce pollution, boost resilience and support communities as nature, food production and critical infrastructure face increasing pressure from weather extremes and demand for natural resources.

This plan sets out areas of focus for 2026 to 2027. For example, in March 2026, we launched a new 10 Point Plan to address waste crime and deliver more consistent enforcement action. We’re setting up targeted campaigns with government and law enforcement partners to uncover criminal activity and stop waste crime before it occurs. We’re making greater use of restriction notices – powers that can shut down an illegal waste operation immediately, with no warning.

Improving water quality is also a key theme. Three years ago, we had 91 people doing water inspections, now we have around 500. In 2025 to 2026 we met our new target to inspect 10,000 water company sites – in 2026 to 2027 we will undertake 11,500 visits, inspections and audits. This relentless focus has seen a reduction in serious failings over the last year, but clearly there’s much further to go. As we tighten and professionalise our water regulation work, we continue to work with government on reforming the regulatory system to better protect rivers, lakes and the sea.

We’re supporting sustainable growth, setting stricter targets for our environmental permitting. We have taken on a role as Lead Environmental Regulator for a number of major projects. We are also working closely with the National Grid, Network Rail, National Highways and many other infrastructure providers to ensure great economic and environmental outcomes. 

This year, we delivered on commitments in the Chancellor’s Regulatory Action Plan:

• responding to 95% of planning applications within target times
• clearing backlogs in permitting and enforcement
• significantly accelerating permit turnaround times

When new housing around Oxford was at risk due to sewage treatment capacity, we worked with the City Council and Thames Water to agree a scheme that means 18,000 homes can be built.

We’re changing how we operate to reduce pressure on the public purse, to save fee-paying businesses’ money, and to reinvest in environmental protection. Next year we will:

• further modernise our IT to improve customer service
• make prudent use of artificial intelligence tools
• deliver measurable efficiency gains

We know that transparency is vital. In the coming year we will publish even more of our inspection reports on all sectors, set out clear expectations on how often regulated entities can expect inspection, and meet our demanding Freedom of Information targets. 

The Environment Agency’s thirtieth anniversary is a significant milestone, but we never stop looking to the future. Our corporate strategy, Environment Agency: EA2030 change for a better environment aims to modernise our organisation and reinvigorate our mission. This business plan focuses on how we will deliver that strategy in 2026 to 2027, so that we continue to protect the environment and support sustainable development for another 3 decades. 

Alan Lovell, Chair

Philip Duffy, Chief Executive and Accounting Officer

Our 2025 to 2026 performance highlights

The Environment Agency’s corporate scorecard provides a high-level overview of our performance against our environmental and business aims, linking to the Environmental Improvement Plan. We publish our full performance in our corporate scorecard quarterly reports, and these can also be read on the government’s regulator dashboard.

We set more ambitious targets in 2025 to 2026 than in previous years. We’ve delivered against them. This business plan introduces even more ambitious measures and metrics. These cover the number of properties benefitting from flood protection, drought preparedness and plans, pollution in abandoned metal mines, and hectares of all habitats created or restored.

Our 2026 to 2027 priorities

The plan outlines our priorities for the year ahead. They reflect our long-term goals and organisational transformation described in our strategy, EA2030.

Healthy air, land and water supporting nature’s recovery

We all need healthy air and water to survive. And we all benefit from healthy land and nature.

We regulate across a wide spectrum – from nuclear power and waste to water quality, flood protection and even fishing licences. Whatever the field, our aim is to reduce harm, drive improvement, and support responsible growth.

We work to protect against harm today and to help England meet the challenges of climate change, environmental decline, and growing risk.

We’ll support healthier water and nature’s recovery by:

• enhancing our supervision of water company environmental performance through compliance assessments, including wastewater treatment plants
• improving how we permit, check compliance with and share information on new water company infrastructure. This will help record-breaking water company investment remain on track and improve river health and water quality
• working with the government’s Water Delivery Taskforce to ensure water supplies and wastewater treatment meet the needs of a healthy environment and economy. By December 2026, we’ll publish draft River Basin Management Plans for consultation, which will help target actions including investment to maximise environmental benefits
• working with Ofwat, Drinking Water Inspectorate and Natural England to join up water regulation. Together, we’ll hold the water sector to account, improve monitoring and enforcement, and provide greater regulatory certainty and transparency
• continuing to implement the Water Special Measures Act, introducing automatic penalties and increasing compliance and enforcement. We’ll work closely with the government to shape the new water regulator and reforms described in the Water White Paper
• simplifying environmental permits for low‑risk nature recovery activities. We’ll work with 16 projects led by environmental non-government organisations to design and test new permitting approaches
• using more nature-based solutions, such as natural flood management, in the new flood investment programme and from the outset of our projects

We’ll ensure better preventative regulation and stop pollution to air, land and water by:

• stopping more waste crime – improving prevention, detection and consistent enforcement. We’ll intervene earlier to prevent large and high-risk sites, disrupt criminal activity across the waste supply chain, and hold operators to account. We’ll use our enforcement powers decisively, naming illegal sites and removing persistent poor performers licences. We’ll intensify our joint operations with police, HMRC and local authorities. We’ll increase transparency through our new online Waste Hub
• contributing to the government’s upcoming Circular Economy Growth Plan, working locally and nationally with partners. We’ll work with government on reforms to the Packaging Waste Recycling Note and Packaging Waste Export Recycling Note system. We’ll work closely with government and PackUK to improve how the packaging Extended Producer Responsibility scheme is delivered
• working with the government, the Office for Nuclear Regulation and other partners on reforming the nuclear regulatory framework
• contributing to delivery of the government’s PFAS Plan: building a safer future together,  and work with partners to reduce the risk of chemicals, including per- and poly-fluoroalkyl substances (‘forever chemicals’) harm to the environment and to human health.
• enhancing our regulatory capacity for existing and future COMAH (Control of major accident and hazard) sites focusing on those presenting the highest risks of environmental harm
• continuing to work with farmers on their environmental performance, through farm inspections and by supporting environmentally friendly farming practices
• working with the government to reform regulations on spreading sewage sludge on agricultural land, to ensure safe and sustainable practices that manage risks

Sustainable growth

The government has put economic growth at the top of its agenda.

We’re here to protect and restore the environment while enabling the right kind of growth: sustainable, resilient, and fit for the future.

We’ll support the government’s growth mission by:

• removing planning barriers, speeding up decisions, and partnering with business and the government, to unlock sustainable growth where nature can cope. We’ll digitise and accelerate our planning processes and continue to support housing and major infrastructure projects
• making our environmental permit decisions clearer, faster and more evidence-based, while encouraging growth and protecting the environment. We’ll digitise this service to make it simpler for business
• continuing to develop our Lead Environmental Regulator Programme to simplify permit and approval systems for businesses. We’ll work closely with Defra and partners to accelerate nationally significant infrastructure and growth projects, while facilitating innovation and protecting the environment
• working with developers and local planning authorities to bring more contaminated land back into use for infrastructure and clean energy facilities​. We’ll revise permits to help clean up groundwater and contaminated soil, issue new guidance and publish an updated report on this topic
• preparing and consulting on guidance on applying updated best available techniques[footnote 1] to combustion plants that generate back-up power at data centres
• continuing to partner internationally, including with the US Nuclear Regulatory Commission, to implement more effective and efficient assessment, advisory services and regulation of the nuclear and fusion sectors
• helping the UK cut carbon emissions by working with DESNZ to extend the UK Emissions Trading Scheme to cover shipping and Energy from Waste; explore possible alignment with the EU system, and set rules for new low-carbon technologies such as carbon capture, storage and use, and hydrogen production

A nation resilient to climate change

Protecting people, places, and businesses from climate change is vital. It supports communities, growth and a future that’s worth handing down.

We’re working to improve England’s resilience to emerging and future climate impacts, including increasingly severe and frequent flooding and drought. This will protect lives, properties, our natural environment – and support future growth.

We’ll support climate resilience by:

• investing £1.4 billion in the next generation of flood and coastal erosion risk management. This will include £830 million to build new or replacement flood defence assets to protect properties
• continuing to maintain our ageing flood infrastructure to enhance its reliability. We’ll invest £260 million of the £1.4 billion, to ensure our flood management assets can withstand changing flood patterns
• updating our National Flood and Coastal Erosion Risk Management Strategy to reflect evolving challenges
• being an exemplar Category 1 Responder under the Civil Contingencies Act 2004. We’ll improve our ability to respond to all incidents by embedding the National Operations Centre and the new National Forecasting and Warning Service into our processes and ways of working. We’ll build stronger relationships with our emergency partners. And we’ll support the Floods Resilience Taskforce by making our response to all types of flooding more comprehensive
• increasing water security by identifying and progressing more new water infrastructure projects through Regulators Alliance for Progressing Infrastructure Development, including 10 reservoirs, 19 water recycling and transfer schemes and two desalination plants. These will improve England’s resilience to future climate impacts, supporting growth and our natural environment
• publishing a new Navigation Strategy to create a more resilient and financially sustainable navigation service for service users and the public

How we’ll implement our 2026 to 2027 priorities

We’ll continue to embed our guiding principles to improve our operations and achievements.

These guiding principles are:

• act with clarity
• act with knowledge and conviction
• focus on efficient and effective delivery
• find solutions to problems old and new
• work more closely with partners
• serve with care

What really matters is the difference that people can see and feel. Businesses, customers and the public will receive greater impact from us at better value. We’ll provide enhanced but simpler services, and more protection from environmental risks and pollution.

People at the Environment Agency

Our impact doesn’t come from rules alone. It comes from our people – who are skilled, trusted, and backed by smart tools and data.

Our people are regulators and reformers, engineers and ecologists, inspectors and incident responders. Some are in labs and offices. Others are on riverbanks. Many are in boots, hi-vis, or waders. Wherever we are and whatever we’re doing, we’re one team.

Our people are our most important asset. We’ll continue to serve them with care.

We’ll invest in our people by:

• continuing to prioritise health safety and wellbeing in everything we do. Our new Health, Safety & Wellbeing Strategy, and our ambition for ‘zero harm’, will focus on our organisational systems as well as our attitudes, behaviours and values
• enhancing diversity at all levels, strengthening our inclusive leadership, expanding our talent pipelines, and our improving workforce data and insights. By removing barriers to job entry and career progression, we aim to attract, develop, and retain a diverse workforce that reflects the communities we serve. This will foster better decision-making, drive innovation, and ultimately lead to improved outcomes for both our colleagues and the wider community
• developing and embedding a Workforce Planning Strategy to help achieve our ambitions in our strategy, EA2030. This will include investing in appropriate employee skills, professional development and qualifications, and digital tools, to help our people deliver more and protect the places that sustain us all

Ways of working

In the face of increasing challenges, we need to change how we work – notably through stronger and more strategic partnerships – without compromising the environment.

We’ll become a more agile and effective organisation by:

• conducting coordinated action and targeted campaigns with the government and crime agencies to stop waste crime. We’ll share intelligence, unite our capabilities and expertise, and act decisively to stay ahead of criminals
• working with water regulators Ofwat, Drinking Water Inspectorate and Natural England on a joint programme to enhance water regulation within the current framework. This will result in more certainty, transparency and better enforcement across the water industry
• partnering with the government and local authorities to support reshaping local plans and spatial strategies to unlock more sustainable growth
• working with the government to help apply constrained discretion [footnote 2] as set out in our Strategic Policy Statement. We’ll be confident and pragmatic in our decision-making and risk management to achieve better outcomes for communities.
• working across government to support climate-resilient public services. We already have active partnerships with the Department of Transport, Network Rail, National Highways, the Ministry of Defence, National Health Service, Department of Work and Pensions, Department for Education and the Ministry of Justice. Together, we’re making schools, prisons, healthcare, transport and defence less likely to be disrupted by flooding
• developing and expanding our work with more private sector partners to understand the flood risk to their estates, employees and customers. This will help them to invest in resilience, benefiting business and communities alike. This approach will help to build resilience and enable our funding to go further
• working with infrastructure and construction sectors to share best practice, learn lessons and collaborate on innovation in shared priority areas. We play a key role in the Infrastructure Industry Innovation Partnership (i3P) and the Infrastructure Client Group working together on cross-sector initiatives to increase productivity, improve safety and reduce carbon
• working closely with the 12 Regional Flood and Coastal Committees to shape our flood investment programme, supporting place-based solutions and building more resilient communities
• improving the sustainability of both our operations and our work with suppliers, implementing our refreshed sustainability strategy to reach net zero by 2045 to 2050

Digital and technology

The world is changing and so are we. We’re embracing new tools and technology – using data to anticipate risk, guide growth, and shape more responsive services.

We’ll develop a ‘digital first’ approach to our services to make them more efficient and effective. This means prioritising technology and simple digital solutions for our people and our customers, including systems that make appropriate use of AI. This will free our people to apply their expertise and improve lives through smarter decisions.

We’ll invest in new digital and technology solutions and systems by:

• transforming our work on flooding and in emergencies. We’ll expand our digital Flood Warning System to increase the range of warnings that citizens can subscribe to. We’ll make it easier for people to submit incident information digitally rather than by telephone
• digitising our regulations to unlock the power of data. We’ll carry on transitioning multiple legacy monitoring systems into a single Environmental Monitoring and Planning (EMP) system to make data more accessible to our scientists and use better evidence to take action.
• simplifying our services for customers. We’ll continue to make our permitting more efficient and user-friendly through our Regulatory Services Programme. This year, we’ll increase the permit types available on the platform and continue to expand users’ ability to apply for, renew, pay and track permit applications online through our self-service system. We’ll reduce response times for statutory planning consultations through our Spatial Planning Service resulting in a more consistent service for developers, local authorities and other stakeholders who require our input. we’ll continue to use user feedback to design our digital services
• modernising our operations with new technology. We’ll continue to embed AI throughout our operational, regulatory and decision‑making processes to enhance our ability to anticipate risks, respond to incidents and deliver high‑quality services. We’ll invest in, pilot and roll out tools such as AI assistants to process small sewage discharge and flood risk activity permits, this will speed up processing while improving consistency. We’ll use AI to support timely and accurate responses to requests for information, including Freedom of Information requests. We’ll also increase the information we publish on GOV.UK to help people find answers to their questions more easily without having to contact us

Funding

From climate shocks to population expansion and ageing infrastructure, environmental pressures are increasing rapidly. People have growing expectations around the environment and value for money. And business efficiency demands create other challenges. We must innovate while increasing our efficiency and effectiveness.

Our total budget for 2026 to 2027 is £2,428 million (£154 million more than in 2025 to 2026).

Our funding to deliver flood-related outcomes mostly comes from the public purse.

Our environment protection outcomes are largely funded by fees and charges from those we regulate. These have increased by £91 million compared with 2025 to 2026.

We’ll demonstrate value for money by:

• developing charges to fund more of our regulatory duties, including enforcement, environmental monitoring and incident management. We’ll bring in £50 million of new charges, including for regulating green list wastes. [footnote 3]. So customers benefitting from our regulatory services, rather than taxpayers, will pay for these services
• improving our charging governance and transparency and ensuring that charging decisions are based on clear evidence, comprehensive assurance and align with the full cost of inflation
• securing increased commercial value from our assets and seeking partnerships that result in commercial income
• publishing an efficiency plan in the summer of 2026

Footnotes

1. Best available techniques/technologies (BAT) are those that prevent or minimise pollution, can be effectively and are economically implemented, and are technically viable while meeting the overall aims of the EC Directive. ↩

2. As set out in the Strategic Policy Statement for the Environment Agency, the Secretary of State expects the Environment Agency 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. ↩

3. Non-hazardous materials posing low environmental risk (such as clean paper, plastic or metal), which are destined for recovery or recycling rather than disposal. ↩