A new era of tougher regulation is beginning: What permit holders need to know

Published: 11 December 2025

The Environment Agency’s second annual Chief Regulator’s Report 2024-25 was published on 21 November – and it makes one thing crystal clear: a new era of tougher regulation is beginning.

With an additional £51m in annual funding and more than 500 new water sector regulation staff recruited since 2023, enforcement is accelerating at a pace not seen before.

For permit holders, this represents a fundamental change in how compliance, risk and liability will be managed in the years ahead.

Serious pollution incidents are rising

This acceleration in enforcement reflects the Environment Agency’s response to the continued rise in pollution incidents.

Last year, serious pollution incidents (Category 1 and 2) in England rose from 561 to 622 – an average of nearly two serious incidents every day - and the highest since 2013. This includes a 60% increase in water company incidents, 57% in waste, and 40% in agriculture.

Over 20,000 compliance assessments were completed, and while industrial permits issued under the Environmental Permitting (England and Wales) Regulations 2016 remain strong (95% rated A or B), water companies’ average environmental performance assessment fell to just 19 stars – the lowest since the metric began in 2011.

Key takeaways for permit holders

Enforcement has intensified: There were 168 prosecutions resulting in £3.8 million in fines and 37 custodial sentences handed down, alongside more than 800 agricultural interventions. Waste enforcement activity also intensified, with notices nearly doubling to 295. A major criminal investigation into over 2,000 sewage treatment works is still ongoing, with seven significant water company prosecutions currently being prepared.
High-risk sites face real consequences: Regulation is now fully intelligence-led and risk-based. Repeat poor performers are firmly in the enforcement spotlight, with swift escalation from warnings to civil sanctions and even prosecution. High performers will benefit from a lighter touch.
Water is under heightened regulatory pressure: The Water (Special Measures) Act 2025 received Royal Assent in October 2025 and is now in force, introducing faster civil sanctions, full cost recovery from offenders, and new duties such as mandatory pollution incident reduction plans. Inspections of wastewater treatment works tripled to more than 4,650 with 25% of sites found non-compliant. 100% of storm overflows are now fitted with event duration monitors, driving real-time enforcement.
Compliance deadlines are shorter: Regulation 61 information requests and improvement conditions are being issued far more quickly, with much shorter deadlines.
Cost recovery is now standard: If the Environment Agency spends money fixing your failure, you will be billed in full.

The risks you can’t ignore

The Chief Regulator’s report highlights a tougher enforcement landscape where non-compliance carries escalating consequences.

As a permit holder, understanding the key risks you face and the practical steps you can take to reduce them is critical.

Financial penalties: Fines are rising sharply, and custodial sentences are increasingly being handed down. Investing in proactive pollution prevention measures and incident response planning can reduce the likelihood of serious incidents.
Reputational damage: Poor performers are publicly identified, with water companies’ ratings falling to their lowest since 2011. Robust monitoring, transparent reporting, and continuous improvement programmes can all help to demonstrate strong compliance.
Operational disruption: Enforcement notices, investigations and prosecutions can halt or severely impact business activity. Establishing clear compliance management systems, ensuring rapid response to information requests, and implementing pollution incident reduction plans to stay ahead of regulatory deadlines can all help to mitigate the risk of operational downtime.
Cost exposure: Full cost recovery is now standard, meaning any expenditure by the regulator to rectify failures will be billed directly to the operator. Strengthening high-risk aspects of your operations such as waste and water management, slurry, silage, and storm overflows can help reduce cost exposure and contribute to strong performance ratings to benefit from lighter-touch regulation.

The bottom line

The Chief Regulator’s report signals a new enforcement era. Site owners who fail to adapt face escalating risks – financial, legal and reputational. But those who invest in compliance and resilience will benefit from reduced oversight and faster permitting.

Compliance is no longer just the right thing to do; it’s the most cost-effective strategy.

Note: the Environment Agency covers England, but we are seeing similar tougher stances from all UK regulators.

How we can help

We specialise in helping site owners stay ahead of regulation and mitigate the risks highlighted in the Chief Regulator’s report. Our services directly align with the areas now under the sharpest scrutiny.

Pollution incident response and prevention: Rapid deployment teams and proactive risk assessments to reduce the chance of category 1 and 2 incidents.
Environmental compliance support: Guidance on Regulation 61 requests, improvement conditions, and pollution incident reduction plans, ensuring you meet deadlines and avoid enforcement action.
Waste and water management solutions: Expertise in tackling illegal waste risks, storm overflow compliance, and wastewater treatment performance.
Cost avoidance strategies: By preventing incidents and ensuring compliance, we help you avoid fines, enforcement costs, and reputational damage.