Defra Gears Up for Green Regulation Overhaul, Aiming to Balance Nature and Economic Growth

The UK government is fast-tracking sweeping environmental regulation reforms, aiming to strike a balance between economic growth and nature conservation—while preventing costly debacles like the £100 million “bat tunnel” built to protect just 300 bats along a one-kilometre stretch of the HS2 rail project.

Ministers are proceeding with key recommendations from a government-commissioned review. While cautioning against an outright "bonfire of regulations," the review emphasised the need for streamlining guidance, regulators, and approval processes. The reforms are designed to expedite planning applications for farmers, businesses, and major infrastructure projects, ensuring that environmental protections don’t become insurmountable roadblocks.

The review, led by economist and former charity leader Dan Corry, found that developers face a labyrinth of over 3,000 environmental rules, often needing permissions from multiple regulators—many of whom they never engage with in advance to clarify implementation. The result? A bureaucratic quagmire that neither supports economic expansion nor delivers effectively for nature.

In recent statements, Sir Keir Starmer and Rachel Reeves have criticised the impact of species protections, citing concerns that conservation efforts for jumping spiders and newts are delaying infrastructure and housing projects. However, Corry’s review rejects the idea that growth and environmental protection are at odds. Instead, he argues, systemic reform can unlock better outcomes for both—though short-term trade-offs may be inevitable.

While some hail the reforms as a long-overdue modernisation, environmental groups warn of risks. Many fear that loosening regulations could undermine nature recovery efforts. In response, Corry’s review proposes targeted cleanups of existing environmental guidance—removing duplication, ambiguity, and inconsistencies rather than dismantling key protections.

Among the fast-tracked reforms:

• Slashing 110 pages of bat protection guidance to just 10 pages to simplify compliance.

• Appointing a single lead regulator for significant infrastructure projects to streamline decision-making.

• Updating regulations to give regulators more discretion in granting permit exemptions for lower-impact activities.

• Launching a unified planning portal to centralise and accelerate approvals.

The new Defra infrastructure board will play a crucial role, working with developers early in the process to ensure more proportionate decisions—and to prevent future bat tunnels or costly mitigation structures like the £15 million kittiwake nesting platforms built for the Hornsea 3 offshore wind farm.

Another key initiative will empower "trusted nature groups"—including the National Trust—to carry out conservation projects without wading through layers of redundant permits. The reforms also introduce a “nature market accelerator” to structure private-sector investment in environmental conservation.

One particularly contentious recommendation—the reform of the Habitats Regulations, which protect hundreds of critical wildlife sites and species—is not being pursued immediately. The government is treading carefully and is aware of fierce resistance from conservationists.

Alongside these environmental reforms, the Government has already introduced a new planning bill, proposing:

• A streamlined planning process to reduce delays.

• Adjustments to how developers fulfil environmental obligations.

• Compensation schemes include offering electricity bill discounts to communities near new pylon installations.

Announcing the latest reforms on Wednesday, Mr Reed said he was “rewiring Defra and its arms-length bodies to boost economic growth and unleash an era of building while supporting nature to recover.

“Dan Corry’s essential report gives us a strong set of common-sense recommendations for better regulation that will get Britain building.”

Mr Corry said: “We must focus on good outcomes and nature enhancement, not on rigidly preserving everything at any cost.

“This review clearly shows that simply scrapping regulations isn’t the answer – instead, we need modern, streamlined regulation that is easier for everyone to use.

“While short-term trade-offs may be needed, these reforms will ultimately deliver a win-win for both nature and economic growth in the longer run.”

But Richard Benwell, chief executive of Wildlife and Countryside Link, warned: “The Government’s planning reforms fall far short of the win-win approach ministers want and Corry seems to support.”

He said the risk to nature in new Government planning laws was “high”. He promised benefits were “wafer thin”, as he called for regulatory reform to deliver a more straightforward, stronger focus on environmental recovery.

He said, “For too long, environmental regulators have been too poor and too weak to enforce the law.

“Their environmental duties have been too soft and vague to drive environmental recovery.

“In any reform, Defra must find strength with simplicity: all regulators and regulation must contribute to the urgent action needed to halt environmental decline by 2030.”

Harry Bowell, director of land and nature at the National Trust, said: “Today’s review shows that achieving better outcomes for nature doesn’t have to mean wholesale deregulation or pitting nature against growth.

“We’re particularly pleased to see a new approach for partnering with trusted nature organisations, recommendations for unblocking barriers to investment in nature-based solutions to flooding and pollution, and work to improve the coherence of new environmental markets.”