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Why we raise charges

Provides an overview of Environment Agency funding and the legislative basis for each of our charging schemes and other charges.

The Environment Agency has a duty to look after the environment and make it a better place to live. We regulate businesses in order to minimise pollution incidents and reduce industry's impacts on the environment.

We are required by the Secretary of State for Environment, Food and Rural Affairs, to recover the costs of our main regulatory services from the companies we regulate.

Sources of funding

We have two main sources of funding, Government grants from the Department for Environment, Food and Rural Affairs (Defra) and the National Assembly for Wales (NAW) and the charges we raise.

Our flood defence activities are financed primarily by Government grants and levies on Local Authorities, while our regulatory work is funded through the charges we raise for environmental permits and licences.

For other aspects of our work relating to fisheries, recreation, conservation and navigation, we raise charges on those who benefit, supplemented by Government grants.

2008/09 planned funding

In 2008/09, the sources of funding for our activities have been planned as follows:
  • Government and other grants £726m (66%) 
  • Charges and levies £360m (33%) 
  • Other income £14m (1%)
    Total funding: £1.1bn (100%)

Corporate plan

Each year we publish a Corporate Plan. This is our formal submission to Government Ministers of our income and expenditure plans. A separate Corporate Plan for Wales is produced which is used by NAW to determine our priorities and funding for the activities carried out in Wales.