Water Scarcity

Graham Stuart Excerpts

Tuesday 9th December 2025 Westminster Hall

[John Milne]

I thank my hon. Friend for his intervention; I very much agree. We need to look at every measure to utilise water that is already there, in addition to reservoirs, which take up lots of space.

When it comes to our groundwater bodies, 40% are already classed as over-extracted, and only 16% of England’s surface waters are judged to be in good ecological status. The National Audit Office warns that, as of today, 12 million people already live in water-stressed areas. Seven water company regions are expected to hit critical status by 2030, and the number rises to 12 by 2040. Meanwhile, average water use per person is surprisingly rising, completely contrary to policy. It is now at around 140 to 150 litres a day, despite a Government target of just 110 litres by 2050.

Water underpins everything—our environment, our economy, our wellbeing and, of course, our national food supply—and right now the evidence is clear: we are not on a path that will guarantee water security for future generations. The situation is not helped by poor management performance and under-investment from many of our privatised water companies, which has additionally resulted in a crisis of water quality as well as scarcity.

That is the national picture, but there are two sectors where the consequences are being felt most acutely: housing and the rural economy. The Government have set a target of 1.5 million new homes by the end of this Parliament, but it is not going to happen without solving the water crisis. In Cambridgeshire, water stress has already delayed 9,000 homes and 300,000 square metres of commercial development. Over the course of this Parliament alone, more than 60,000 homes could become undeliverable due to water constraints, with more than £25 billion in lost value. Research suggests that in some areas nearly 40% of the Government’s new housing target cannot be delivered under current water supply conditions. Developers cannot invest when they cannot guarantee water. Local businesses cannot expand without commercial space. Communities cannot grow when basic infrastructure cannot be secured. Therefore, water scarcity is fast becoming a major handbrake on economic ambition, and in some of the UK’s highest growth potential regions.

In my constituency of Horsham, West Sussex, we have been fighting our own version of water wars for the past four years. That is a result of a unique requirement, known as water neutrality, by which no new houses could be built if they increased demand on water supply by as much as a single litre. That was ordered by Natural England to protect a rare river habitat in the Arun valley, threatened with over-abstraction. It was a daft rule imposed overnight and now it has been removed—again, overnight. Both decisions are wrong.

Those wild policy U-turns at a national level have left Horsham without a five-year land supply, turning Horsham district council into a wild west for speculative developers. Creating water headroom for new housing requires the Government to create new supplies, not simply fiddle with the figures. Looking at how Horsham has been treated, it is hard to have confidence in the Government’s bona fides on the environment.

The second area I want to turn to is the rural economy. Farmers, vineyards, garden centres and nurseries rely heavily on access to water. As chair of the all-party parliamentary group for rural business and the rural powerhouse, I hear regularly from farmers who have faced ruinous losses during drought periods. In 2025 alone, arable farmers have lost £800 million to drought. Increased water capture and storage is the obvious solution, but farmers face obstacles everywhere: historical abstraction limits no longer fit for purpose, complex planning rules and grant schemes not open to smaller enterprises. The Government have recently confirmed that they intend to reform permitted development rights for farm reservoirs. If the Minister could confirm a timetable for that to happen, I am sure hon. Members would be grateful.

The horticulture industry employs more than 770,000 people, contributes nearly £40 billion to the economy and more than £8 billion in tax revenue. This year, the driest spring since 1983, followed by among the hottest summers, has pushed many growers to the limits. Although hosepipe bans have become routine these days, the impact on business profits is anything but. One nursery reported to the Horticultural Trades Association that footfall fell by 20%, and it lost £300,000 the last time drought measures were imposed in their region.

An abstraction threshold of 20 cubic metres per day forces many growers to fall back on using treated drinking water, which is costly, inefficient and environmentally absurd. In Horsham, local growers tell me that water scarcity is now one of the biggest constraints on their investment. Ben from Tates of Sussex garden centres says:

“A few days without irrigation can mean tens of thousands of pounds of plant losses…and rising water costs are becoming a limiting factor on our entire business.”

The rural economy has the potential to contribute an additional £19 billion a year to the UK, but only if it has access to the water infrastructure it needs. What should we do? For housing, we need to be more water-smart. That means construction guidelines for new homes and usage standards for white goods. What it should not mean is overly restrictive rules enforcing hyper-low-pressure devices. Push too far in that direction and people simply respond by taking longer showers and double-flushing the toilet. Instead, we need practical, efficient, enforceable standards. We need retrofit incentives for existing housing stock, because old homes are where the real efficiency lies, and there are many more of them.

For the rural economy, we should introduce new permitted development rights for small and medium reservoirs. The current rules effectively block most farms or nurseries from qualifying. We should create more flexible abstraction rules for winter refill. It is not fair to ask farmers to invest hundreds of thousands of pounds building reservoirs, without the certainty that their licences will be renewed. We should support nature-friendly farming and soil health. Healthy soil can hold up to 350,000 litres of water per hectare, which reduces the risk of both drought and flood. We should recognise essential food infrastructure as nationally important, while also recognising the role that water storage plays in food infrastructure.

At the national level, we urgently need joined-up oversight. Britain remains without a single national strategy for water security. Responsibilities are spread across the Department for Environment, Food and Rural Affairs, the Environment Agency, Ofwat, local authorities and water companies. The National Audit Office has warned repeatedly that this confused accountability leads to strategic inertia. Funding decisions are fragmented, planning cycles are misaligned and essential investment—nearly £20 billion in resilience infrastructure identified by the National Infrastructure Commission—remains unfunded.

We should bring water resource management plans, drainage strategies and price reviews into a single co-ordinated process. We should launch a national water literacy campaign to put water efficiency on the same footing as net zero, and we should give one agency clear responsibility for delivering long-term water resilience, ensuring that all future demands are met. If we get this right, the benefits are enormous: a resilient rural economy that can grow and innovate; ecosystems that are healthier, more diverse and no longer pushed to collapse by over-abstraction; chalk streams that remain a part of our national heritage; secure food production; reliable water for homes, industry, data and energy; and a housing sector that can actually deliver the homes we need.

It is a simple choice: action now or crisis later. Water is not an optional extra; it is the foundation of a functioning country. I hope that we can agree that what Britain needs is not just investment and regulation, but a national plan under coherent leadership. We need a commitment that water security will not be an afterthought, but will continue to be the backbone of our infrastructure system.

[Graham Stuart (in the Chair)]

I remind Members to please bob if they wish to be called in the debate.

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[Graham Stuart (in the Chair)]

If everybody speaks as scheduled, it should be about seven minutes each.

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[Jess Brown-Fuller (Chichester) (LD)]

It is a pleasure to serve under your chairmanship, Mr Stuart. I am very aware that the Division bell might ring at any moment to signal that we have to go to the main Chamber for a vote, so I will very slowly begin what I had planned to be a three or four-minute speech, while waiting for the bell to ring.

I thank my hon. Friend the Member for Horsham (John Milne)—[Interruption.]

[Graham Stuart (in the Chair)]

Order. The debate is suspended for 15 minutes for a Division in the House, as brilliantly predicted by the hon. Member.

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On resuming—

[Graham Stuart (in the Chair)]

The debate may continue until 4.11 pm.

[Jess Brown-Fuller]

It is a pleasure to serve under your chairmanship, Mr Stuart, as much as it was 15 minutes ago. I thank my hon. Friend the Member for Horsham for securing this important debate.

The south-east, where my constituency is, has been designated as water stressed since 2021. As reflected in many of the contributions, that sometimes feels quite hard to believe in such a wet country. Much of my constituency is a low-lying coastal plain, and weather volatility is causing severe conditions on both ends of the scale. Droughts and floods are a commonplace occurrence, whereas before they were less likely.

I would like briefly to talk about chalk streams. I am very lucky to represent two of England’s 200 chalk streams, and over-abstraction on the River Ems over many years means that the point of constant flow has moved two kilometres downstream since the 1960s. That means that a large proportion of the river is drying up every summer when it never used to. Constituents have told me harrowing accounts of trying to rescue the salmon that migrate down the River Ems, and it feels like a total catastrophe when people are trying to save those fish. The Test and the Itchen, just outside my constituency, are also rare habitats and important chalk streams. They, too, are really impacted by over-abstraction.

To address that, Portsmouth Water is building the first new reservoir in more than 30 years, the Havant Thicket reservoir, just on the border of my constituency. That was largely favoured by the local community, because it would create a new space and an exciting environment for people to visit and walk around. Then Southern Water got involved. It saw this brilliant idea that was popular among the population, and it put forward a proposal to invest in Havant Thicket with Portsmouth Water by introducing an effluent recycling scheme, the first of its kind in this country to supplement our drinking water supply. By investing in that technology, Southern Water can use clever accounting tricks to maintain its bottom line by describing the technology as an asset rather than investing in fixing its existing infrastructure, which is much less appealing to its shareholders.

The cost of the scheme to introduce effluent recycling into the drinking water supply at the Havant Thicket reservoir is estimated to be £1.2 billion, but the costs are spiralling every year. There is also no lasting legacy to this project. The plant will become redundant in 60 years, but customers will be paying for it in their bills for far longer. It is also hugely energy intensive. At the same time, as many hon. Members have mentioned, Southern Water wastes 100 million litres of water every day from leaky pipes that it has failed to maintain.

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[Jess Brown-Fuller]

My hon. Friend raises an important point about the infrastructure necessary at waste water treatment works. In Bosham in my constituency, a new development is coming online, which has hundreds of homes. Currently, Southern Water says that it does not have any more capacity at the waste water treatment works. Yet because it has the statutory duty to connect, people will potentially be moving into the homes without any of the water infrastructure.

Meanwhile Chichester harbour, which is a protected landscape, is having more and more sewage dumped into it because the water infrastructure has not kept pace. Does my hon. Friend agree that water companies should play an important role in the planning decisions before the houses are brought online, so that those houses are built where the infrastructure is?

[Graham Stuart (in the Chair)]

Order. Interventions should be short.

[Tim Farron]

I agree with my hon. Friend. We made those points during the passage of the Water (Special Measures) Bill, now the 2025 Act, and we will of course try them again in the near future. Water scarcity and limited water storage capacity put acute pressure on farming and food production. There must be more support for farmers to manage water well and for the development of local resource options to secure and store water.

Flooding and drought both threaten our agriculture sector and therefore threaten Britain’s food security. In the last few days we have been commemorating with great sadness and dark memories the 10th anniversary of Storm Desmond in Cumbria and elsewhere in the country. We see water levels rising today and recognise that it is so important that we invest in protecting our communities—in particular those who provide the food for our tables: our farmers.

Water companies must be held to account. That means requiring them to reduce leakages, deliver on efficiency targets, expand uptake of water meters and embrace water-saving technologies. In my constituency, we do indeed have an awful lot of lakes, and they need topping up, so it rains rather a lot. We are the most beautiful part of England, I would argue, but we are also the wettest. Yet despite the fact that we get three and a half times more rainfall per year than even Manchester, we end up facing droughts and potential water rationing over the summer months. That can only be the consequence of appalling levels of investment in our water network as we see good water leaking out of the system. The wettest place in England last summer had a hosepipe ban—that is barmy and outrageous.

At the same time, we recognise that augmenting supply may become unavoidable. Options must include new reservoirs, especially in regions that suffer from lower rainfall, as well as greater water recycling, desalination where ecologically feasible and transfers of water between regions. It is vital that we support farmers and land managers as they struggle with extreme weather. The Liberal Democrats stand alone as the only party in England calling for food security and resilience of food supply to be counted as public goods and therefore supported through the environmental land management schemes, which we would boost with an additional £1 billion per year. The lack of water through periods of drought is a fundamental threat to our food security, so we would ensure that farmers are actively supported to ensure that they remain able to put food on our tables no matter the weather.

Before I close, we ask the Minister: will there be a comprehensive cross-departmental UK adaptation strategy that embeds climate resilience, including water resilience, across all Government policies and agencies? Will that be set out in the water White Paper that we are expecting very soon following the Independent Water Commission report just before summer? Will the White Paper introduce resilience standards for water and support homeowners in installing adaptation measures against flooding and overheating?

Will the White Paper restore agricultural permitted development rights, as set out by my hon. Friend the Member for South Cambridgeshire (Pippa Heylings), to allow farmers to build on-farm reservoirs with the support of the local community? Will the White Paper bring in a new clean water authority to replace the failed Ofwat and merge it into an authority with other regulators too?

[Sarah Gibson]

On the subject of flooding, which is slightly off the point, I have just received information from the Environment Agency to say that Chippenham is flooding again this year. The Minister will remember that she and I spent some time mopping out in wellies, and we are at that point of flooding again. Does my hon. Friend agree that funding for flood resilience is vital? The fact is that areas not within mayoral authorities seem to be unable to secure any funding for anything.

[Graham Stuart (in the Chair)]

Order. Shortly after the hon. Member responds to that intervention, he should bring his remarks to a close.

[Tim Farron]

I have only a little left, but thank you, Mr Stuart. I pay tribute to my hon. Friend, who is a strong advocate for her communities and is echoing their anger at being overlooked for funding. It is worth recognising that, although it may be no fault of the Minister’s, DEFRA is one of the few Departments that got an actual cut in the Budget. Does that affect farming or flood investment? It is deeply concerning for all of us who live in habitually wet communities.

I want to press the Minster on whether the White Paper that is coming will set out a single, powerful regulator that the water companies actually fear, rather than what we have at present: a whole range of weak regulators that the water companies play off against one another. Meanwhile, the companies continue to take people’s money and not provide adequate water infrastructure. Water scarcity is a real and growing challenge. The causes are in part natural, but in part they are political. We have a water industry that is structured to make a small number of people incredibly wealthy, not to meet the needs of our country. Will the White Paper address the outrageous and outdated ownership model to ensure that we tackle the problem?

We will not deal with the issue by tinkering around the edges. It will only change when we have the kind of regulation that the industry cannot shimmy its way around, and when we have an ownership model that puts water supply and water users ahead of an amoral dash for profit. If we do not act now with joined-up planning, proper investment, accountability, strong regulation and a better ownership model, then the shortfall of water forecast by 2050 will hit communities across our country, and Governments both past and present will rightly get the blame.

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[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Emma Hardy)]

It is a pleasure to serve under your chairmanship for the first time, Mr Stuart. I thank the hon. Member for Horsham (John Milne) for bringing forward this debate, which has raised some important issues that I do not think have had the hearing they need in Parliament.

Water scarcity is a huge and pressing issue, and it is particularly brought to mind by the climate change that we can see happening in front of us. As has been mentioned, we have just had one of the driest spring and summers, and I have been involved throughout the year in the national drought group that brings together the Environment Agency and all stakeholders to look at the issue of drought across the country. Next year will be a special anniversary of the situation 50 years ago, in 1976, and I am mindful not to be in a similar situation as a Minister. What we do around water and how we deal with problems of scarcity are therefore very much at the forefront of my mind.

I agree with many of the points that have been made, including about the issue of leakage. In effect, customers are paying for a resource that is literally being spilled out in the wrong place. We have strong targets on leakage, because looking at reducing leakages is one of the big levers to pull in how we deal with and meet the demand for water in future. A 20% reduction by 2027, 30% by 2032 and 50% by 2050 is where we need to get to in reducing leakage, using the baseline of 2017-2018.

The hon. Member for Chippenham (Sarah Gibson) mentioned that her constituency is flooded again. I well remember visiting it with her and seeing the devastation of people mopping water out. They had done a brilliant job by the time we arrived, and I remember being very impressed at how well they had cleared it out, but it is absolutely awful. That shows why we need all the money that we are putting into flood alleviation, and why it is crucial.

I hope that this time the flood alerts and warnings system was more effective. Following last year, we looked at how we could improve that system, which has been upgraded, so I am keen for feedback. I wrote a “Dear colleague” letter—which I know you will have read in great detail, Mr Stuart—about how we can support constituents and businesses with information and contact numbers related to flooding, and I am also keen for feedback on that.

This debate is about our other water problem, however: not flooding, but scarcity. The situation for the people of Tunbridge Wells has been horrific. I have been in regular contact with the chief executive officer of South East Water and the local Member of Parliament. I have made it clear that we think the disruption in Tunbridge Wells is completely unacceptable.

On what happens next in the process, hon. Members will understand that people there are under a boil notice, and South East Water is looking at when that boil notice will be lifted. Importantly, the Drinking Water Inspectorate will do a full investigation that will include interviewing all the relevant people and drawing its conclusions. It is looking into why the problem happened, why it has taken so long to restore supply, and at the company’s important communication with customers.

[Graham Stuart (in the Chair)]

Order. Please speak through me, Minister.

[Emma Hardy]

Apologies, Mr Stuart; I should gaze upon you at all times.

Protecting customers, of course, must be one of the top priorities, so I have been chairing one of the multi-agency responses. Normally agencies talk to agencies and Government, but I felt the need to intervene personally in this matter—which I have done three times in the last week—to look at every step that has been taken to resolve the issue, and particularly the concern around communication and making sure that vulnerable people are getting the water that they need.