The British Steel Limited Property Transfer Regulations 2026

The explanatory memorandum states that removing the £250,000 cap allows regulators to impose penalties that are more proportionate to the nature of the offense and the size of the company.

The government asserts that the change ensures penalties can better account for the degree of environmental harm and the financial gain derived from the non-compliance.

Proponents argue that the previous cap limited the effectiveness of civil sanctions as a deterrent, particularly for large corporations in the water sector.

The order seeks to align the civil penalty regime with criminal sentencing guidelines, where fines for environmental offenses are not capped at a specific monetary amount.

Legal commentators have noted that removing the cap grants the Environment Agency significant discretionary power, which may lead to legal challenges regarding the consistency and predictability of enforcement.

Industry bodies have expressed concerns that unlimited civil penalties could be imposed without the same level of judicial oversight found in criminal court proceedings.

Some organizations have questioned whether the Environment Agency has the administrative capacity to manage the increased complexity of calculating much larger, uncapped penalties.

Critics may argue that the shift towards high civil penalties could diminish the role of criminal prosecutions for the most serious environmental offenses.