Welcome to the Freeths Environmental Law team’s monthly blog, setting out what the team considers to be the most significant environmental legal and policy updates from August 2026.
Water
Ofwat consults on additional AMP8 investment
Ofwat has published draft determinations for consultation proposing approximately £3.4 billion of additional funding for water companies during Asset Management Period 8 (AMP8), which runs from April 2025 to March 2030, through its Cost Change 2026 process. The proposals would support investment in PFAS (also known as "forever chemicals") treatment, water and wastewater infrastructure, asset resilience and growth-related projects, including schemes intended to facilitate housing development and accommodate increased demand from data centres.
Ofwat indicates that some of the additional expenditure may be recovered through customer bills ahead of the next five-yearly Price Review in 2029.
The consultation closes on 24 September 2026. Final determinations are expected in December 2026.
Response to consultation on Significant Water Management Issues
The Environment Agency (EA) has published a summary of responses to the November 2025 consultation on Significant Water Management Issues (SWMIs), an important step in preparing the next cycle of River Basin Management Plans (RBMPs). The consultation identified a range of ongoing pressures on the water environment, including pollution, water resources, physical modification of water bodies and the impacts of climate change.
The EA will use the consultation responses to inform the draft RBMPs, which are expected to be published for consultation in December 2026. Updated RBMPs are then due to be adopted by December 2027. The plans will play a key role in setting priorities and measures for improving the water environment over the next planning cycle.
Nature-based solutions handbook for water resources
The EA has published a new handbook on the use of nature-based solutions in water resources management. The guidance is intended to support the development of projects that work with natural processes to improve water resilience and environmental outcomes and will be of interest to water companies, regulators and developers considering alternative approaches to water resource management.
Waste and enforcement
EA consults on waste and water enforcement
The EA is consulting on updates to its Enforcement and Sanctions Policy, specifically Annex 4, to cover three major waste initiatives: Packaging Extended Producer Responsibility (pEPR), the Deposit Return Scheme (DRS) and Digital Waste Tracking (DWT). The consultation explains how the EA will use its enforcement powers, including fixed and variable monetary penalties where available.
Under pEPR, the EA is responsible for enforcing producers’ obligations to register and report packaging data, but the enforcement of payment of disposal and administration fees sits with PackUK. For DRS, which is due to launch in October 2027, the EA will be able to impose variable monetary penalties and compliance notices. For DWT, which begins for waste receivers in October 2026, both fixed and variable penalties will be available, with fines for the most serious breaches potentially exceeding £1 million for large organisations.
The consultation also sets out proposed changes, in a new Annex 5, to cover the civil sanctions regime introduced by the Water (Special Measures) Act 2025, including powers to impose civil monetary penalties applying the civil standard of proof, namely “on the balance of probabilities”.
The consultation closes on 4 October 2026.
Defra and the Welsh Government consult on fly-tipping offending
Defra and the Welsh Government are consulting on proposals to give local authorities powers to issue conditional cautions requiring fly-tipping offenders to carry out clean-up work and/or make a payment to cover the costs of clearing the dumped waste. The proposal is aimed at lower-level fly-tipping offences, rather than more serious or repeat offending, where prosecution would generally remain the preferred option. If an offender fails to comply with the conditions of a caution, the local authority could proceed with prosecution for the original offence.
The consultation states that existing enforcement measures have not been sufficient to tackle fly-tipping and wider waste crime. The proposals seek to provide a more visible and immediate response to offending, based on the principle that those responsible for environmental harm should bear the cost of remedying it. The measures also form part of a broader package of waste crime enforcement initiatives, including higher fixed penalty notices and enhanced vehicle seizure powers.
The proposals have prompted discussion about whether additional enforcement powers alone will be sufficient, or whether greater local authority enforcement capacity and intelligence sharing will also be required to tackle fly-tipping effectively.
The consultation closes on 16 October 2026.
Planning, biodiversity and nature recovery
Revised National Planning Policy Framework for England
The Ministry of Housing, Communities and Local Government (MHCLG) published a revised National Planning Policy Framework (NPPF) for England on 17 August 2026.
Tom Roberts, Associate, identifies the key environmental changes in the new NPPF. These are:
Biodiversity Net Gain (BNG)
The revised NPPF limits the circumstances in which local planning authorities can seek BNG requirements above the statutory 10% minimum. Higher requirements may only be justified in specific circumstances, including where they relate to particular site allocations and can be demonstrated to be deliverable (Policies N1 and N2).
Local Nature Recovery Strategies (LNRS)
LNRS have been given greater prominence throughout the NPPF. Policies N1, CC1 and GB5 emphasise the role of LNRS in plan-making, nature recovery, green infrastructure planning and the development of ecological networks.
The revised framework encourages planning authorities to use LNRS as an important part of the evidence base for local plans and to align nature recovery and climate objectives with LNRS priorities.
Protected landscapes
The policy protection afforded to Protected Landscapes (National Parks, the Broads and National Landscapes in England) has been strengthened. Policy N4 reinstates a stronger policy position against major development within these designated areas.
Clean energy and water
Clean energy and water management have been given greater prominence through the introduction of a dedicated chapter, Securing Clean Energy and Water (Policies W1-W4).
Climate change, mitigation and adaptation
A more prominent framework for addressing climate change is introduced through policies on climate planning (CC1), climate mitigation (CC2) and climate adaptation (CC3).
Notably, Policy CC3 expressly recognises emerging climate-related risks, including wildfires and highlights the role of the planning system in addressing and mitigating such risks.
Environmental Delivery Plans
Environmental Delivery Plans (EDPs) under Part 3 of the Planning and Infrastructure Act 2025 (drafts of which are shortly expected to be published by Natural England) have been given prominence in the NPPF, making clear that the normal legal and policy approach to “habitats sites” is disapplied where developers instead commit to paying a Nature Restoration Levy (NRL) under an EDP.
Updated guidance on irreplaceable habitat within the BNG regime
Defra has updated its guidance on the treatment of irreplaceable habitat under the BNG regime. The update reflects the extension of BNG requirements to Nationally Significant Infrastructure Projects (NSIPs) from 2 November 2026 and provides specific guidance on the treatment of irreplaceable habitat within NSIP applications.
The guidance confirms that impacts on irreplaceable habitat cannot be addressed through the standard biodiversity metric and instead require a bespoke compensation strategy agreed with the relevant decision-maker. It also clarifies that statutory biodiversity credits cannot be used to compensate for impacts on irreplaceable habitat. For NSIPs, applicants will be required to identify irreplaceable habitat within the BNG boundary, explain measures to avoid and minimise impacts and provide a compensation strategy where loss or deterioration cannot be avoided.
The updated guidance may be of particular interest to promoters of NSIPs ahead of the commencement of the BNG regime for such projects on 2 November 2026.
Environmental governance
OEP publishes Corporate Plan for 2026/27 to 2027/28
The Office for Environmental Protection (OEP) has published its Corporate Plan for 2026/27 to 2027/28. The plan identifies water regulation, nature recovery and planning reform as key priorities, including scrutiny of proposed reforms to water regulation, Environmental Delivery Plans (EDPs) and Environmental Outcome Reports (EORs) and ongoing investigations concerning implementation of the Water Framework Directive (WFD) Regulations.
However, the OEP also notes that its funding is expected to remain broadly static and therefore reduce in real terms, meaning it will need to make “prioritisation choices”. The OEP states that it does not currently plan to devote significant resources to a number of areas, including waste and soil management, climate change, biosecurity and public enjoyment of nature and has deferred planned work on water scarcity.
The content of this page is a summary of the law in force at the date of publication and is not exhaustive, nor does it contain definitive advice. Specialist legal advice should be sought in relation to any queries that may arise.
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Paul Brailsford
Partner, National Head of Planning & Environment
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