Environmental permitting reform – will it speed up infrastructure and housing projects? 

As part of the broader growth agenda, the Government has set its sights on reforming construction-phase permitting requirements. But will it make a significant difference? The Ashurst Environment Team discuss.

1. What has been announced?

On 27 October, the Government announced changes to the environmental permitting regime to remove the need for environmental permits for certain low-risk construction related activities. This is being promoted by the Government as a way to reduce regulatory burdens and speed up project delivery in the housebuilding and infrastructure sectors. 

2. Legally, how will this change come about?

The Environmental Permitting (England and Wales) Regulations 2016 (EPR) will be amended to empower the Environment Agency (in England) (EA) and Natural Resources Wales (in Wales) (NRW) to make, amend and revoke exemptions for specific activities. This contrasts to the more rigid current approach in which exemptions are set out in legislation. The Department for Environment, Food & Rural Affairs (Defra) has stated that once the new powers come into effect, it anticipates that the EA will use them to introduce "targeted exemptions designed to support construction projects". Before introducing new exemptions, the regulators will be required to consult publicly, including publishing risk assessments. 

3. What is the proposed timing for these changes?

Defra has announced that steps are being taken so that the amendments to the EPR can be made in 2026. Once the EPR has been updated, the EA / NRW will consult on the relevant exemptions. So realistically, businesses are likely to see changes at some point in 2026. 

4. What will be the effect for house builders and infrastructure projects?

By exempting low-risk activities from permitting requirements, the changes are advertised to save up to 16 weeks on development project timelines. The Government's view is that this will help get projects off the ground more quickly, reduce administrative costs and will provide greater certainty on investments in housebuilding and infrastructure. These are fairly expansive claims in respect of construction-phase environmental permits, however the overall sentiment is clear – the Government is trying to remove barriers to development. 

5. Do we know the specifics of what might be exempt?

While the exemptions will be determined through future consultations, the government has indicated several activities that are likely to be considered for exemption. These include:

• Site drainage operations, such as channelling and discharging uncontaminated water (e.g. rainwater) through temporary ditches, culverts, or drains

• Site investigation works (e.g. ground investigations before construction)

• Dewatering operations 

• Time-limited storage of imported inert waste materials (such as for visual screening bunds)

• Installation of temporary floodwater barriers

• Groundworks within flood plains 

These exemptions are targeted at low-risk, often temporary, activities in the early stages of construction which currently require permits.

6. Does it mean that these areas will be unregulated?

No, the reforms do not mean that these activities will be unregulated. Exemptions will only be granted for activities assessed as low risk, and it is likely that the regulators will impose conditions on their use in order to ensure an appropriate level of environmental protection. For example, even if site drainage activities are exempt from permitting, they must still be carried out in a way that does not cause pollution or harm to the environment, and may also be controlled under planning conditions. The EA will be required to consult on and publish risk assessments for any proposed exemptions, and the existing objectives of the permitting regulations (to protect human health and the environment) will continue to apply. 

7. Is there anything I should be doing now before the introduction of the new legislation?

Yes, there are several proactive steps that infrastructure and housebuilding companies should take:

• For developments that are already underway, keep applying for permits and complying with them until an exemption becomes available.

• Consider the implications for project planning and investment decisions as the new regime may allow for faster mobilisation and some reduction in costs, but only if you are prepared to take advantage of the new exemptions as they become available.

• Review your current and upcoming projects and as more detail becomes available to identify which activities might be eligible for exemption under the new regime.

• Engage with the consultation process when the EA publishes proposals for specific exemptions. The exemptions will be tailored and may not cover all activities, so it is important to provide feedback to ensure that the changes address the real-world challenges faced by your projects.

• Continue to manage environmental risks robustly after an exemption is secured, as the removal of permitting requirements does not remove the obligation to prevent environmental harm or the risk of enforcement action for non-compliance.

8. Will it make a significant difference?

While these changes will no doubt be welcomed by the construction industry, in practice, they are unlikely to deliver significant changes. The Government's positive noises on 'removing hold ups' and 'cutting administrative costs' should be seen in context – creating exemptions for a limited number of low-risk construction phase activities. What is notable, however, is that the Government is leaving no stone unturned in its quest to deliver infrastructure development and new homes. As they say, every little helps.