Planning and Infrastructure Bill

Debate between Baroness Grender and Lord Lucas

Committee stage
Thursday 24th July 2025 Lords Chamber

[Lord Lucas (Con)]

My Lords, I have Amendment 61 in this group. Its purpose follows on from what my noble friend Lord Gascoigne said: namely, that we have not built a new reservoir for a long time. The intention of the amendment is to give the Government the power to change that—to make things happen.

I would hope that the existence of such a power would mean that things happen anyway, but we need the ability to shift things onwards and to get out of the situation we are building ourselves into. We want to put in another 1.5 million houses but have no way of supplying them with water, particularly in some bits of the country that would actually welcome additional houses. It is important to get over whatever the blockage is and it would be a good idea to give the Government a bit of dynamite to do this.

I am delighted that Tideway has come in on budget. Perhaps the noble Lord could introduce whoever is responsible for that to whoever is responsible for the doors here.

[Baroness Grender (LD)]

My Lords, as we consider the challenge of water security, we all feel the urgency. Demand is rising, our climate is changing and not a single new major reservoir has been completed in over three decades, as we have already heard. Yet pursuing a one-size-fits-all solution rarely serves us well, especially regarding water storage and distribution. I particularly thank the noble Lords, Lord Gascoigne and Lord Lucas, for inspiring this discussion and debate.

There is consensus on building new reservoirs, but this cannot be done in isolation. Proper investment from water companies is essential, particularly in tackling leaks and improving demand management so that we use water more wisely, even as we boost supply. This is not either/or; it must be both. Yesterday, in the Statement regarding the Independent Water Commission, the full implication of the broken infrastructure that has led to so much water going to waste was laid down very clearly.

It is tempting to focus on grand, large-scale projects, but we should make space for smaller, locally led interventions that reflect the needs and fabric of our communities. Alongside ambitious infrastructure, a programme of carefully sited small and medium reservoirs, delivered in partnership with farmers, landowners and councils, can speed up progress, reduce environmental barriers and, most importantly, engage local people. We have heard not just from experts but from communities themselves that local schemes such as Slow the Flow projects, natural dams and catchment-based storage bring added benefit for flood mitigation and biodiversity, not just water supply. These nature-friendly solutions must be championed alongside larger reservoirs.

However local schemes alone are not enough. We must pair them with strategic national thinking. Regions with water surpluses should be able to support those facing deficit—a modern, integrated network for water transfer. I ask noble Lords to bear with me, because this is a little complicated. The National Infrastructure Commission, which was replaced by the National Infrastructure and Service Transformation Authority in April 2025, was praised by the National Audit Office for its proposals, which constituted a positive cost-benefit case for establishing a network of strategic transfers of water—a transfer system that enables us to balance supply across the country, smoothing out regional disparities and providing resilience against drought and flooding. The recent Commons Library briefing, Future Water Resources, highlights several proposed intercompany transfers, such as Thames Water to Southern Water—120 megalitres a day—demonstrating that active steps can be and are already being undertaken. Alongside large and small reservoirs, these transfer schemes are truly integral to future-proofing our water supply and reducing the risk of shortages.

Turning to the amendments before us, Amendment 59, in the name of the noble Baroness, Lady Coffey, proposes removing the size and complexity test for new water infrastructure to focus solely on the value for money test. But, as Ofwat’s current regulations set out, that test ensures that projects do not threaten a water company’s fundamental service to customers. Given the sector’s current state, we should tread carefully before removing this safeguard. A more prudent path may be to consider government co-funding models, such as that now being used for nuclear, if projects exceed what companies can realistically deliver and are in jeopardy of providing a poor or totally broken service—or further broken, should I say—to consumers.

Amendment 61, in the name of the noble Lord, Lord Lucas, would hand powers to the Secretary of State to dictate timelines and, crucially, permit bypassing planning controls. While there is much in the amendment that we read with interest, I worry in particular about proposed new subsection (3)(b), which is a significant centralisation of power. Yes, there has been an unacceptable delay in reservoir construction, but concentrating such powers is unlikely to foster better outcomes. Proper local engagement, as we all made very clear in our Second Reading speeches, and scrutiny need to be balanced and are vital partners to each other.

Amendment 62, tabled by the noble Baroness, Lady McIntosh of Pickering, aligns more closely with the objectives on these Benches. I look forward to hearing the Minister’s response to the compelling arguments that were made on the noble Baroness’s behalf.

Above all, we must ensure that interventions, whether mighty reservoirs or smaller, community-scale schemes, work for people and for nature, and are delivered with transparency, accountability and genuine urgency. I hope the Minister will clarify the Government’s support for small reservoirs and for a robust water transfer network, so that every region and every customer in every region can feel protected, valued and heard.