Spending Review: Boost for farmers, blow for regulators

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Spending Review: Good news for farm payments – but not for regulation as DEFRA budget reduced

We welcome the government’s commitment to significantly increase funding for Environmental Land Management Schemes (ELMS) – with the budget set to rise by 150% from £800 million in 2023/24 to £2 billion by 2028/29. This substantial investment offers a vital opportunity to support farmers in restoring nature, improving soil health, and reducing agricultural pollution in our rivers and streams. But is it enough?

In a difficult fiscal period, DEFRA needs all the support it can get to increase funding for the transition to nature-friendly farming. However, the Spending Review raises serious concerns about the Government’s ability to protect river health. DEFRA’s overall budget has been reduced by 2.3% in real terms – continuing over a decade-long decline in funding. As a result, it remains under-resourced to enforce environmental laws at scale, limiting regulators’ ability to hold polluters, including water companies, to account.

Water bill payers across the country expect their water companies to be held responsible for pollution – not rewarded for failure. Weakening the watchdogs that should be protecting the UK’s rivers and water supply is unwanted by the public.

Clean water in jeopardy: DEFRA cuts would sink Labour’s rivers, seas and lakes commitments

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Ahead of the Government’s Spending Review, many of the UK’s most respected environmental organisations and campaigners, including the RSPB, GMB Union, The Wildlife Trusts, Good Law Project, Keep Britain Tidy, Surfers Against Sewage, WWF-UK, Wildlife and Countryside Link, British Rowing, The Rivers Trust, Hugh Fearnley-Whittingstall, Chris Packham, Robert Plant, Jim Murray, Liz Bonnin, Robert Macfarlane, and Imogen Grant, have joined forces demanding the Government increase funding to DEFRA and fully resource the regulators tasked with cleaning up Britain’s rivers, lakes, and seas.

In a letter sent to Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves, the group, coordinated by River Action and in the wake of the March for Clean Water in November 2024, warns that Labour’s credibility on environmental protection is on the line. The letter follows widespread concern that any cuts to DEFRA’s budget in the Spending Review will severely undermine the Government’s ability to deliver on its clean water promises, made central to last summer’s general election campaign.

While the group acknowledges the introduction of the Water Special Measures Bill and the establishment of the Independent Water Commission led by Sir Jon Cunliffe, whose interim report was published on Tuesday this week, it stresses that without urgent and sufficient funding, these efforts risk being little more than symbolic.

The signatory organisations – including some of the UK’s largest environmental charities – represent millions of people across the country. Among them are groups that mobilised the 15,000-strong March for Clean Water in November 2024 – the largest-ever peaceful protest for clean water in British history.


 Key Facts:

  • Only 14% of rivers in England meet good ecological status.
  • In 2024, 3.6 million hours of untreated sewage was discharged into waterways across England and Wales.
  • Farm inspections remain so infrequent that each farm can expect to be checked once every 25 years.
  • Almost 50% of farms inspected in the last two years were non-compliant with environmental rules – but only 22% faced any form of enforcement.
  • The Environment Agency’s funding has been cut by 50% over the last decade, hollowing out its ability to monitor and prosecute polluters.
  • Water companies have racked up £64.4 billion in debt since privatisation and continue to pay out dividends while infrastructure fails.

The Coalition’s Core Asks:

  1. Fund the regulators – Restore and increase budgets for DEFRA, the Environment Agency, Ofwat and Natural England so they can enforce environmental law and hold polluters to account.
  2. Support nature-friendly farming – Expand and protect funding for the Environmental Land Management Schemes (ELMS) and Sustainable Farming Incentive (SFI) to enable farmers to play their part in river recovery.

Voices from Across the UK:

Growth for who?: The true cost of water pollution

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By Henry Shepherd, Communities Coordinator, River Action

“Economic growth is the number one mission of this government” says Rachel Reeves.

Yet, as rivers fill with sewage and budgets for environmental protection are slashed, many small businesses and communities that rely on clean water are being left behind – or worse, shut down.

Across the UK, water pollution is no longer just an environmental and public health issue – it’s an economic one. Behind every brown plume, fish kill, or no-swim warning, there’s a person whose livelihood is taking a hit.

These aren’t abstract numbers or distant disasters, these are real people – watersports instructors, anglers, B&B hosts, event workers – who depend on rivers being clean, safe, and healthy. However, as the toxic cocktail of agricultural runoff, raw sewage, and chemicals continues to flood our waterways, and environmental oversight is gutted, many are finding themselves on the losing end of the government’s “growth” agenda.

“I’ve been shut down and unable to sell my product due to sewage spills upstream… I’m now effectively without a source of income”

Calvin, watercress farmer from Hampshire


The new Labour government has made no secret of its intention to turbocharge economic growth. This growth is achieved via cutting environmental budgets, and stripping regulators of the resources they need to hold polluters accountable. Those who end up winning are corporate shareholders – and the losers are small, local businesses that are being slowly drowned in polluted waterways. This has knock-on effects across entire local economies – the pint in the pub, the B&B, and the stop at the shop after your fishing trip hit local communities in ways we can’t always measure.

“Once a thriving business, I now haven’t taken on a customer in 12 months.”

Angela Jones, watersports business owner on the River Wye


It’s a bitter irony: the very communities that should be benefiting from Labour’s pursuit of ‘growth’ are being stifled by the fallout of short-term thinking and insufficient regulation. River-dependent businesses losing trade due to smell and stigma – cancelled sports events  and family holidays – river users unable to work after getting sick. Entire local economies are being dragged down by the stink of polluted rivers.

This is a symptom of a system that values profit margins over public health, investor returns over infrastructure, and “growth” over anything remotely sustainable. That’s why we’ve written to the Prime Minister and the Chancellor to urge them to end the era of cuts to Defra.

“We rely on membership subs for our Rowing club to survive … .if you don’t want to get sick, why would you pay to row on a nasty river?”

Tom, Club Captain at Durham University Rowing Club


Until water is protected like the public asset it is – not a dumping ground or a corporate cash cow – these stories will keep piling up. And so will the pollution. As the government finalises its spending plans on 11 June, we’re forced to ask:

Growth for who?

Sir Steve Redgrave calls on the Government to clean up the Thames, ahead of Schools’ Head of the River Race

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As nearly 3,000 young rowers gather for the Schools’ Head of the River Race, all-time Olympic rowing champion Sir Steve Redgrave calls for urgent action to clean up the River Thames. In a letter to Secretary of State for the Environment Steve Reed, Sir Redgrave stresses the need for urgent action to address the river’s pollution.

The letter was delivered to Defra, as schools from across the country gather to take part in the UK’s largest processional rowing race for school-aged participants.

The action is being coordinated by environmental charity River Action, which is leading efforts to protect the river from severe pollution caused by sewage discharges. In the letter, Sir Steve Redgrave calls on the Secretary of State to:

  • End pollution for profit by water companies and take firm action to ensure Thames Water cleans up its infrastructure.
  • Give environmental regulators the power and tools to do their job so polluters are held to account.

Sir Steve Redgrave said, “This is not just about rowing. It’s about all river users’ public health. It’s about our environment. It’s about the future of one of the world’s most iconic rivers. We won’t sit quietly while this catastrophe continues.”

River campaigners urge rower safety on poor quality water

In response to growing concerns over water quality across Britain’s rivers , British Rowing, River Action, and The Rivers Trust have developed official guidelines to help rowers minimise the risk of illness due to exposure to polluted water.

The ‘Guidance on rowing when water quality is poor’ advises rowers to cover cuts, grazes, and blisters with waterproof dressings, avoid swallowing river water, wear suitable footwear when launching or recovering boats, and thoroughly clean all equipment after use.

Sir Steve Redgrave emphasised the importance of taking protective measures:

“The Schools’ Head of the River Race is a fantastic event, but rowers need to be aware of the serious health risks posed by polluted water. By following these safety guidelines, we can help minimise the risk, but this situation is completely unacceptable. We need urgent action to stop sewage discharges and protect the health of everyone using our rivers.”

Erica Popplewell, River Action’s Head of Communities, added:

“We are thrilled that so many young people are getting out on the water, but their health must not be put at risk. We urge every rower, coach, and participating school to follow our guidance to stay safe. But guidance alone is not enough—we need the Government to take decisive action to clean up the UK’s polluted rivers, and Thames Water must be stopped from polluting for profit.”

Water quality testing

Water quality testing conducted by River Action last year on the stretch of the Thames used for the Boat Race between the Universities of Oxford and Cambridge (also used for the Schools’ Head of the River Race) revealed dangerously high levels of E.coli bacteria caused by sewage pollution.

Tests using a World Health Organization-verified E.coli analyser recorded contamination levels up to ten times higher than the Environment Agency’s threshold for ‘poor’ designated bathing waters—where the Government advises against swimming.

Furthermore, River Action can reveal that in the last 6 months, Thames Water allowed 133 hours of human sewage to enter the section of the Thames used for the Schools Head of the River Race.

River Action continues to call for immediate intervention, including placing Thames Water into special administration, to prevent further environmental damage and protect river users.

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