Our overview of the Department for Environment, Food & Rural Affairs (Defra) examines its spending and performance. It brings together insights from our reports and other publicly available sources including Defra’s annual report and accounts.
Jump to downloadsKey takeaways
Objectives
Strategic vision: The Department for Environment, Food & Rural Affairs (Defra) is responsible for improving and protecting the environment. Its vision is to restore nature, support growth and enhance security.
Priority outcomes for 2025-26:
- Restoring nature while supporting development
- Reforming our water system so that it drives growth, protects consumers and enhances the environment
- Backing British farmers and food industry to boost production
- Resetting trading relationships, including with the European Union (EU)
Defra is also responsible for strengthening national resilience and security, the stewardship of critical national infrastructure, and helping protect and restore critical global ecosystems.
Financial position
Total spending in 2025-26: Defra spent £6.67 billion in 2025-26, mostly through its arm’s-length bodies and executive agencies. Increased expenditure by the Rural Payments Agency (RPA) largely accounts for the £1.11 billion (19.9%) increase from 2024-25. This includes a £0.33 billion increase in expenditure on agri‑environmental grants in 2025-26.
Insights from our work
Financial management and reporting: The Comptroller & Auditor General (C&AG) has provided an unqualified (clean) opinion on Defra’s 2025‑26 financial statements. The group level qualification was lifted in 2024-25 following improvements in data quality and reporting across the group, and this position has been maintained in 2025-26.
In 2025-26, estimated irregularity or non-compliance with grant scheme rules was £73.41 million. This was material to the RPA’s financial statements – and led to a qualified audit opinion on regularity – but not to Defra’s accounts.
Productivity: Defra is seeking to improve its own productivity and is identifying opportunities to improve efficiency through digital transformation and better use of data.
Defra has supported productivity in some policy areas, for example increasing tree planting and peatland restoration, and it has announced funding to support farm productivity, but significant challenges remain. In 2026, the Office for Environmental Protection found that environmental targets remain largely off track despite some delivery improvements, and outdated IT systems, fragmented data, capacity constraints and difficulties measuring productivity continue to limit progress.
Risk and resilience: Defra is responsible for strengthening resilience across a wide range of areas facing increasing pressures, including from climate change, flooding, animal diseases and disruption to food supplies. While Defra has made progress, including continuing to strengthen resilience and preparedness, significant challenges remain in strengthening long-term resilience, improving preparedness for major disruptions, adapting to future climate risks, and strengthening the critical infrastructure.