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Inquiry · Opened 6 November 2024

Work of the Department and its arm’s-length bodies

From: Environment, Food and Rural Affairs Committee

Open63 documents9 evidence sessions

What this inquiry is asking

This inquiry examines how the Department for Environment, Food and Rural Affairs (DEFRA) and its arm's-length bodies—including Natural England, the Environment Agency, Ofwat, and the Office for Environmental Protection—are performing their core functions. The committee is investigating whether these organisations are delivering environmental protection, food security, and water regulation effectively, and whether departmental strategy and oversight are fit for purpose.

Status / emerging findings

  • Water regulation facing structural overhaul: DEFRA will abolish Ofwat and create a single regulator integrating economic and environmental functions—the largest reform since privatisation (announced November 2025)
  • Ofwat's economic model conceded as broken: the regulator acknowledged that customer satisfaction is poor, pollution incidents stagnant, and its debt-control framework 'does not work' effectively
  • Natural England facing delivery crisis: NAO found 'low confidence' in three of four critical reform programmes; annual reports delayed since 2020 due to resource gaps and weak senior leadership
  • OEP independence concerns: pre-appointment hearing for new Chair revealed DEFRA's appointments team headhunted the preferred candidate after deadline had passed, raising questions about regulatory capture
  • Departmental reputation damaged in farming and fishing: DEFRA acknowledged poor perception in both sectors; fishing industry condemned the EU trade deal as a 'horror show'

Why it matters

These arm's-length bodies control £240+ billion in water investment, farming subsidies, and environmental enforcement—if they are failing to deliver, millions of UK citizens face poorer water quality, weaker environmental protection, and loss of farming livelihoods.

Tone arc

Inquiry opened procedural (November 2024, questioning Ofwat on regulation) but turned sharply critical by March 2025 as evidence accumulated about systemic failures across arm's-length bodies—Natural England's delivery crisis, Environment Agency's reactive stance, and DEFRA's own gaps in crisis planning. By April 2026, the tone shifted toward institutional anxiety about whether new appointments and structural reforms can restore credibility.

Themes

regulatory-failurewater-privatisationfarming-profitabilityenvironmental-standardsinstitutional-capacity

Key witnesses

Steve Reed MP, Secretary of State for Environment, Food and Rural Affairs, Emma Reynolds MP, Secretary of State for Environment, Food and Rural Affairs (successor), David Black, Chief Executive, Ofwat, Dr Tony Juniper, Chair, Natural England, Marian Spain, Chief Executive, Natural England, Philip Duffy, Chief Executive, Environment Agency, Dame Helen Ghosh, Chair-designate, Office for Environmental Protection, Paul Kissack, Permanent Secretary, DEFRA

Reports & Government Responses

Witness sessions

Written evidence & correspondence

Themes & actors

Topics across publication summaries

public-finance ·12rural-policy ·10environmental-regulation ·6agriculture ·5environmental-policy ·5animal-welfare ·4digital-infrastructure ·3nature-recovery ·3public-appointments ·3fisheries ·3parliamentary-scrutiny ·3renewable-energy ·2land-use-planning ·2government-coordination ·2rural-affairs ·2rural-development ·2land-management ·2infrastructure ·2waste-management ·2environmental-governance ·2

Top organisations & named entities

Source · parliament.uk inquiry record ↗