Environment Agency business plans · first published 19 May 2024
The Environment Agency (EA) has published its priorities for the 2026 to 2027 financial year. It is not a procurement or award-criteria document, but it directly affects small businesses that are regulated by the EA — anyone holding an environmental permit, operating near a watercourse, in the waste sector, construction, farming, or data-centre backup-power generation. Key changes for businesses: permit fees are rising (£50 million in new charges being introduced), but processing times are being cut through new digital self-service tools. Waste enforcement is intensifying — more joint operations with police and HMRC, faster use of powers to shut illegal sites. Water-company supply-chain firms should note a sharp rise in inspections and compliance targets. For businesses bidding EA contracts, the plan signals significant capital investment (£1.4 billion in flood and coastal defence) and a digital transformation programme, pointing to future procurement opportunities.
WHO THIS APPLIES TO
THE ENKII VIEW
The EA's shift to digital permitting and self-service is a genuine opportunity for SMEs — faster, more transparent permit decisions reduce the uncertainty that disproportionately burdens smaller firms. However, the £50 million in new regulatory charges will hit regulated SMEs (waste operators, farmers, industrial permit-holders) directly in the pocket from 2026–27. SMEs in construction, environmental consultancy, flood defence, and digital/tech services should watch the EA's procurement pipeline closely given the £1.4 billion flood investment programme and the major Environmental Monitoring and Planning (EMP) digital system build.
1. Budget now for higher permit fees in 2026–27: the EA is introducing £50 million in new charges including for green-list wastes. Contact the EA or check GOV.UK for the updated charging schedule before it takes effect.
SMEs holding or applying for environmental permits (waste, water discharge, industrial) — The document states the EA will 'bring in £50 million of new charges, including for regulating green list wastes' so that regulated businesses rather than taxpayers fund these services.
2. Use the EA's new online self-service permitting system as it expands in 2026–27 — apply, renew, pay and track applications digitally to benefit from faster AI-assisted processing.
SMEs applying for small sewage discharge or flood risk activity permits — The EA is piloting 'AI assistants to process small sewage discharge and flood risk activity permits' and expanding the types of permits available online, explicitly to 'speed up processing while improving consistency'.
3. Audit your compliance position now. The EA is intensifying enforcement — joint operations with police and HMRC, faster use of restriction notices with no warning, and naming illegal sites publicly. Make sure licences, record-keeping and site conditions are in order.
SMEs in the waste sector (operators, brokers, carriers) — The plan commits to 'intensify our joint operations with police, HMRC and local authorities' and to 'use our enforcement powers decisively, naming illegal sites and removing persistent poor performers licences'.
4. Prepare for a farm inspection: the EA is targeting 4,320 inspections in 2026–27. Review your slurry, fertiliser, and water-course management records and ensure they are up to date before an inspector arrives unannounced.
SMEs in farming and agriculture — The corporate scorecard target is 'Complete 4,320 agriculture farm inspections' for 2026–27.
5. Expect your water-company clients to face 11,500 EA compliance assessments and a 90% compliance target for sewage treatment works — prepare to support accelerated remediation and upgrade programmes.
SMEs in water-company supply chains (contractors, engineers, consultants) — The EA's targets include 'conduct 11,500 water industry compliance assessments' and 'Bring 90% of non-compliant sewage treatment works back into compliance' in 2026–27.
6. Monitor EA and government procurement portals for flood and coastal defence contracts: £1.4 billion is being invested in 2026–27, including £830 million for new or replacement assets and £260 million for maintenance — a significant pipeline for specialist small firms.
SMEs in construction, environmental consultancy, and flood defence — The plan confirms 'investing £1.4 billion in the next generation of flood and coastal erosion risk management' including '£830 million to build new or replacement flood defence assets'.
7. Watch for EA procurement opportunities linked to the Environmental Monitoring and Planning (EMP) system, the Regulatory Services Programme, and the Spatial Planning Service — all are active digital transformation programmes cited in the plan.
SMEs in digital, data, and technology services — The EA is 'transitioning multiple legacy monitoring systems into a single Environmental Monitoring and Planning (EMP) system' and expanding its Regulatory Services Programme, signalling active technology procurement.
8. Engage with the EA's forthcoming consultation on best available techniques (BAT) guidance for combustion plants generating backup power at data centres — your permit conditions may change as a result.
Data centre operators with backup generator permits — The EA is 'preparing and consulting on guidance on applying updated best available techniques to combustion plants that generate back-up power at data centres' in 2026–27.
9. Review your own sustainability credentials and carbon-reduction plans: the EA's refreshed sustainability strategy sets a net-zero target for its operations and 'work with suppliers' by 2045–2050, which will filter into supply-chain expectations over time.
All SMEs supplying the EA — The plan explicitly references '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'.
Every rule below quotes the official document verbatim.
The EA's total budget for 2026–27 is £2,428 million, which is £154 million more than in 2025–26. (Environment Agency, all programmes, financial year 2026–27)
“Our total budget for 2026 to 2027 is £2,428 million (£154 million more than in 2025 to 2026).”
The EA is investing £1.4 billion in flood and coastal erosion risk management in 2026–27, including £830 million for new or replacement flood defence assets. (Flood and coastal erosion risk management programme, 2026–27)
“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”
£260 million of the £1.4 billion flood budget is allocated to maintaining existing ageing flood infrastructure. (Flood asset maintenance, 2026–27)
“We'll invest £260 million of the £1.4 billion, to ensure our flood management assets can withstand changing flood patterns”
The EA will introduce £50 million of new regulatory charges in 2026–27, including for regulating green-list wastes, so that regulated businesses (not taxpayers) fund these services. (All EA-regulated businesses, 2026–27)
“We'll bring in £50 million of new charges, including for regulating green list wastes”
The EA will conduct 11,500 water industry compliance assessments in 2026–27, up from 10,500 in 2025–26. (Water companies and their supply chains, 2026–27)
“conduct 11,500 water industry compliance assessments”
The EA will bring 90% of non-compliant sewage treatment works back into compliance in 2026–27. (Water company operators and contractors, 2026–27)
“Bring 90% of non-compliant sewage treatment works back into compliance”
The EA targets stopping at least 90 high-risk illegal waste sites (bringing them into compliance or stopping activity for at least 28 days) in 2026–27. (Waste sector operators, 2026–27)
“Stop at least 90 high-risk illegal waste sites to either a) bring them into compliance. b) stop their activity for at least 28 days.”
The EA will complete 4,320 agriculture farm inspections in 2026–27. (Farming businesses in England, 2026–27)
“Complete 4,320 agriculture farm inspections”
The EA will respond to 95% of planning application consultations and pre-application enquiries within 21 days. (Developers and local planning authorities submitting planning applications, 2026–27)
“Respond to 95% of planning application consultations and pre-application enquiries within 21 days”
Permit application determination timescales range from 35 to 250 days depending on category, with targets of 95% (cat 1), 85% (cat 2), 80% (cat 3), and 75% (cat 4). (All businesses applying for environmental permits, 2026–27)
“Determine permit applications within target timescales ranging from 35 and 250 days, depending on category (95% of category 1, 85% of category 2, 80% of category 3 ,75% of category 4)”
70,000 properties will benefit from flood protection by March 2027. (Flood risk management programme, target date March 2027)
“70,000 properties will benefit from flood protection by March 2027”
By December 2026, the EA will publish draft River Basin Management Plans for consultation. (Water sector, environmental land managers, developers, December 2026)
“By December 2026, we'll publish draft River Basin Management Plans for consultation”
The EA will publish an efficiency plan in summer 2026 and generate cashable efficiency savings of £4.6 million in 2026–27. (EA operations; relevant to suppliers on EA contracts, summer 2026)
“Generate cashable efficiency savings of £4.6m and identify areas of non-cashable efficiencies. Figures will be confirmed as part of the Environment Agency's efficiency plan, summer 2026”
The EA will pilot and roll out AI tools to process small sewage discharge and flood risk activity permits, aiming to speed up processing and improve consistency. (Businesses applying for small sewage discharge or flood risk activity permits, 2026–27)
“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.”
The EA is preparing guidance on best available techniques for combustion plants generating back-up power at data centres. (Data centre operators with backup generator permits, 2026–27)
“preparing and consulting on guidance on applying updated best available techniques to combustion plants that generate back-up power at data centres”
The EA is working with government on the UK Emissions Trading Scheme (ETS) expansion to cover shipping and Energy from Waste, and possible alignment with the EU ETS. (Shipping operators, Energy from Waste facility operators, 2026–27)
“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”
The EA's sustainability strategy targets net zero for its own operations by 2045 to 2050, including requirements on its suppliers. (EA suppliers, all sectors, target 2045–2050)
“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”
This briefing is enkii's interpretation of the official document — the official text always governs.
Source document © Crown copyright, reused under the Open Government Licence v3.0 via the GOV.UK Content API. enkii tracks every Procurement Policy Note and briefs changes the day they land — see all briefings.