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 October 2025.

 Nature & Development

Nature & Development

C G Fry Supreme Court decision

The long-awaited Supreme Court judgment in C G Fry arrived on 22 October 2025.

The case is about the requirement for planning decision-makers to undertake “Habitats Regulations Assessments” (HRA) in the case of multi-stage planning consents and how this applies to reserved matters applications and the discharge of planning conditions where a HRA was not carried out at the planning permission stage.   

The case was a “win” for the developer (C G Fry) due to a narrow, associated point relating to the specific facts of the case for Ramsar sites under planning policy (which are not designated “European sites” covered by the Habitats Regulations). However, the case also brought clarity on a wider point of general application to developers which is not in their favour relating to the requirement for a HRA for Protected European Sites at the stage of reserved matters and the discharge of planning conditions, albeit this was the expected outcome.

Further analysis is available here

Defra responds to OEP’s 44 recommendations on how to meet Environment Act targets

Defra has responded to the Office for Environmental Protection’s (OEP) January report on progress against the Environmental Improvement Plan (EIP) and its 44 recommendations. 

Of the 44 recommendations Defra accepted 21 (with 5 accepted but awaiting a full response), partially accepted 10, deferred a full response to 11 and rejected 2. Specifically, on the OEP’s 8 ‘key recommendations’:

  1. Get nature-friendly farming right – partially accepted
  2. Maximise the contribution of protected sites for nature - full response deferred
  3. Speed up action in the marine environment - partially accepted
  4. Set out clear mechanisms for reconciling competing demands for use of land and sea - accepted, but full response deferred
  5. Develop a circular economy framework - accepted
  6. Mobilise investment at the scale needed - partially accepted
  7. Regulate more effectively - accepted
  8. Harness the support needed to achieve ambitions - accepted, but full response deferred

Defra suggested that the accepted recommendations will be incorporated into the revised Environmental Improvement Plan, expected later this year.

Defra’s full response is available here

Extension of 5,000 Countryside Stewardship mid-tier agreements

The UK government has confirmed it will extend over 5,000 Countryside Stewardship mid-tier agreements, which provide a range of options and capital items that are aimed at delivering a broad range of environmental benefits, by one year, following pressure from the National Farmers' Union (NFU). 

The announcement follows a Freedom on Information request submitted by the NFU, which sought clarity on the number of agreements due to expire at the end of this year. Concerns had been raised about the potential loss of environmental and biodiversity gains if agreements were abruptly ended without an interim or replacement scheme in place. 

Concerns have also been raised on the Higher Level Stewardship agreements – all of which are expected to come to an end in 2028 – as well as the general policy uncertainty on other environmental schemes such as BNG.

More information is available here

Water

Water

Consultation on the WRMP Guidance 

The Environment Agency has launched a consultation on the water resource planning guidelines, which regulators expect water companies to follow when drafting their statutory water resource management plans (WRMP). WRMPs are required under section 37A of the Water Industry Act 1991 and set out how a water company plans to secure a supply of water over the next 25 years. The guidelines are being revised prior to water companies drafting their next WRMPs (due for public consultation in 2028). 

The consultation is available here. The deadline for responses to the consultation is 5 December 2025. The Environment Agency plans to publish the final version of the updated guidelines in spring 2026. 

Consultation on new civil sanctions for water companies

On 22 October, Defra published a consultation on ‘New penalties for water company offences’, seeking views on policy proposals to implement the Environment Agency’s powers under the Water (Special Measures) Act 2025 to impose civil penalties (please see our previous article on the Act here). 

The government is seeking views on the introduction of new penalties for offences committed by water companies, including:

  • Allowing the Environment Agency to use the civil standard of proof (‘on the balance of probabilities’) rather than the criminal standard (‘beyond reasonable doubt’) to impose a monetary civil penalty (including ‘variable’ and ‘fixed’ monetary penalties) for certain ‘minor to moderate’ offences. This includes offences under the Environmental Permitting Regulations 2016 (such as failing to comply with or contravening a permit condition) and Water Resources Act 1991 (such as failing to comply with a condition of an abstraction licence)
  • Setting a cap at either £350,000 or £500,000 for variable monetary penalties imposed under the proposed civil standard of proof
  • Introducing new automatic fixed monetary penalties for specific and obvious breaches without the need for lengthy investigations for permit and licence breaches

The consultation closes on 3 December 2025. 

Permitting

Permitting

Environment Agency to have new powers to define exemptions under the environmental permitting regime 

On 27 October 2025, Defra and the Environment Agency published a joint press release announcing changes to the environmental permitting system. The announcement states an intention for the Environment Agency to have new powers to define exemptions under the environmental permitting regime, and the conditions that apply to them. The Environment Agency will be required to consult on any proposed exemptions. 

The intention is for legislation to be brought forward as soon as parliamentary time allows.

Sustainability

Sustainability

ISO publish new standard on biodiversity 

ISO has published a new international standard to help organisations take action on nature – ISO 17298. The standard aims to help guide organisations “to embed biodiversity into their core strategies, operations and decision-making processes”. The standard can be used by businesses, local authorities, NGOs or public institutions and tries to support organisations to:

  • Understand their biodiversity impacts, dependencies and risks
  • Identify opportunities for green growth and nature-positive finance 
  • Align with global frameworks like the Kunming-Montreal Global Biodiversity Framework
  • Develop and implement a credible action plan

More information is available here

Other resources

  • Freeths’ 4-part Natural Capital webinar series has now concluded. Whether you're a landowner, a broker or a developer, these webinars sought to provide the information you need, so you know what next steps to take. 

    Recordings of the webinar are available here

  • Read thoughts from Freeths’ environmental and planning law experts on the consequences of the landmark Supreme Court judgment in C G Fry – available here.  

  • On 24 September 2025 we hosted an event on UK nature markets at the Royal Society in London. Across two expert panels and thought provoking questions from the audience, we discussed issues and solutions around policy uncertainty, the fragmented and complex regulatory landscape, how to incentivise demand and generate supply, and nature markets' potential for growth.     

    Follow up material summarising the key themes of the day will be available shortly. Please get in touch if you would like a copy. 

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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