NFU strongly disagrees with Environment Agency increased charges proposals

In its response, the EA has said that the proposed increases for a number of application or annual charges for permit and licensed activities that farmers undertake will now go ahead.  

These include the proposed increases for:

• abstraction licence application and annual fees  
• poultry permitting annual fees
• flood risk activity application and annual fees
• landspreading of used sheep dip annual fees
• and biowaste (composting and AD) annual fees.

The only substantive change to the original consultation proposals is that the proposed increases for permit applications for landspreading of used sheep dip are now exempt from the cost-of-service increase.   
 
In terms of the timing of the changes to charges, the EA has informed us that:

• The annual fee changes apply for the full year 1 April 2025 – 31 March 2026 and annual billing will start in late August and run into early October.
• Permitting application fees apply from 1 August.

We will continue to monitor the impact of these changes and will provide further updates as needed.

For full details, see the consultation response on: GOV.UK | Environment Agency charges proposal for cost of service.

This consultation has now closed.

We disagree strongly with these charge proposals. This is a difficult time for the agriculture sector.

Profitability and confidence are at an all-time low and the current policy landscape (inheritance tax changes, the recent suspension of the Environmental Land Management Scheme, Sustainable Farming Incentive, progressive decreases in Basic Payment Scheme payments) has further constrained the incentives and opportunities for farmers and growers to improve the profitability of their farming businesses.

It would be difficult for the agriculture sector to absorb such above inflation increases and at such short notice.

Our key concerns are that the proposed charge changes:

• run counter to the government’s growth mission
• risk unintended consequences
• are difficult to reconcile in the backdrop of a decline in the quality and timeliness of the permitting service; and
• are not fully transparent in terms of the pipeline of future proposed charge increases.

We’d welcome greater transparency from the Environment Agency in its own plans for efficiencies and costs savings, which are largely absent from the consultation paper.

NFU members can log in and read our response in full.

The Environment Agency has said that, due to increases in the costs of delivering its services and inflationary pressures, it has reviewed its regulatory charges and is proposing an increase to these. 

The six week consultation is due to close on 28 May. 

The NFU is reviewing the proposals in detail and will be seeking feedback from members by Friday 23 May to inform its response.

Cost hike adds pressure

Responding to the news, NFU Vice President Rachel Hallos said: “Given the many other pressures and challenges in the farming sector, farm businesses are not in a position to absorb higher costs in the way of these proposed increases to Environment Agency charges.

“The level of charge increases proposed will not only add to the financial burden, but also potentially disincentivise growth and investment in environmental improvements.”