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Monday, 06 February 2023 06:52

Water UK repeats warning about impacts of Levelling Up and Regeneration Bill on water bills and housebuilding activity

Water UK has reiterated its warning that Government proposals to tackle nutrient pollution, if left unchanged, will force water companies to rebuild concrete-intensive sewage treatment works.

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The trade body has repeated its concerns about proposals in the Levelling Up and Regeneration Bill (LURB), warning that if left unchanged, would slow progress and create unintended consequences for nature, housebuilding, and for customer bills.

The warning comes in a briefing note from Water UK, which represents all water and sewerage companies in England, Wales, Scotland and Northern Ireland, which highlights three key policy areas which should be revised or incorporated into Bill:

1. tackling nutrient pollution and ‘nutrient neutrality’

2. cutting sewage spills and flood risk

3. reducing water demand

Commenting on the current proposals set out in the Bill on tackling nutrient pollution, Water UK says that while existing rules require that developments in designated ‘Habitat Sites’, must be ‘nutrient neutral’, this means that development can only happen if the nutrient load created by connecting more homes to existing sewage treatment works is mitigated.

According to Water UK, the rules – while necessary – are effectively blocking 100,000 new homes from being built across the country. The trade body is arguing that the government’s solution, Clause 153, prescribes only one approach (without exception) for tackling nutrient pollution: rebuilding sewage works with concrete and steel.

The briefing note states:

“The amendment’s deadline for completion of work is 2030 – seven years away. That reflects the convoluted steps needed to rebuild hundreds of industrial, highly-regulated and complex sites that use interlocking biological, physical and chemical processes.

“This delays tackling pollution by a decade, in the meantime blocking new homes and adding extra cost to customer bills – at an estimated £40 a year. It also risks stymying the growing practice of using markets and partnerships to deliver nature-based solutions.”

Water UK is calling for the Bill to be amended to allow (and actively encourage where appropriate and locally-supported) nature-based solutions and catchment-based partnerships via water companies entering into local partnerships with farmers and other nutrient users to tackle nutrient pollution.

Water UK also want ministers to make “a clear, unambiguous statement of intent” that the prohibitions on catchment-based approaches are unintended consequences and that they intend to use primary or secondary legislation, or where possible guidance, to avoid missed opportunities.

The organisation says the changes would deliver a number of benefits, including:

  • At least several tens of thousands of additional homes delivered five or more years earlier than would otherwise be the case
  • Up to £50 million each year in potential additional funding for landowners and farmers
  • Up to £40 off the household water bill, compared with using a traditional concrete-based approach

 

The briefing note also says that when it comes to river health, the bill presents an opportunity to kickstart environmental markets using water company investment, but instead pushes companies to invest in concrete and steel. Among key questions Water UK raises in the paper is whether the Minister has considered the impact that the large-scale rebuilding of sewage treatment works required under Part 7 will have on customer bills, particularly given that nature-based solutions could deliver results more quickly and would cost customers far less.

Water UK is also calling for changes to the provisions currently set out in the LURB with regard to cutting sewage spills and flood risk, together with reducing water demand. The suggested changes are accompanied by an outline of the benefits they would deliver, together with further questions the Minister should address.

Click here to download Water UK’s Briefing Note: Levelling Up and Regeneration Bill in full.

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