Oral Answers to Questions

Steve Reed Excerpts

Thursday 19th December 2024 Commons Chamber

[Sir John Whittingdale (Maldon) (Con)]

3. What assessment he has made of the impact of the autumn Budget 2024 on family farms.

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

May I take this opportunity to wish a very merry Christmas to you, Mr Speaker, and to the hard-working House staff?

The Government have committed £5 billion to the agricultural budget over the next two years. That is the biggest budget for sustainable food production and nature recovery in our history. We are also investing £60 million into the farming recovery fund to support farmers affected by unprecedented extreme wet weather last winter. We understand concerns about changes to agricultural property relief, but the majority of those who inherit farmland after a death and claim relief will not be affected by the changes.

[Sir John Whittingdale]

Has the right hon. Gentleman seen the latest research, which shows that 75% of commercial farms will exceed the £1 million threshold and therefore will become liable for inheritance tax? Just to give him one example, a family in West Hanningfield in my constituency who have farmed for five generations say that they face a potential inheritance tax bill of £1.5 million. They say that it will put an end to all that has gone before and end the aspirations of their family. I plead with the Government to look at this again.

[Steve Reed]

Of course we hear the concerns, but I say to the right hon. Gentleman that in the last year for which we have actual claims data available, over 75% of claimants would not be affected. Of course, most farms, like every other business, can do succession planning in the usual way so they do not have to pay any more than they need to.

[Josh Fenton-Glynn (Calder Valley) (Lab)]

Merry Christmas, Mr Speaker. Our hard-working farmers across Calder Valley want to earn a living from farming, not use their land to avoid tax. After 14 years of neglect by the last Government, which undercut farmers in trade deals, the sector is, however, becoming increasingly unprofitable. I welcome the Labour Government’s new deal for farmers and the 25-year road map to making farming profitable again. Can the Secretary of State assure me that Calder Valley farmers will get their fair share in this new deal and in the new improved countryside stewardship higher-tier scheme next year?

[Steve Reed]

My hon. Friend will be aware that the shadow Secretary of State, the right hon. Member for Louth and Horncastle (Victoria Atkins), and the former Prime Minister, the right hon. Member for Richmond and Northallerton (Rishi Sunak), keep telling farmers that they are not in it for the money. We know that they are. They are businesses that need to make a profit, and our new deal for farmers, which includes increasing supply chain fairness, is intended to make farms profitable and successful for the future in the way they were not under the previous Government.

[Mr Speaker]

I call the shadow Minister.

[Dr Neil Hudson (Epping Forest) (Con)]

The autumn Budget put family farms in jeopardy. Those farms also need biosecurity to protect their futures. With avian influenza spreading, bluetongue still with us and African swine fever at our doorstep in Europe, biosecurity is national security. Central to that is the Animal and Plant Health Agency, whose headquarters in Weybridge needs a £2.8 billion redevelopment to protect farming and animal, plant and public health. The Conservative Government rightly started that work with £1.2 billion committed in 2020. I note that Labour has committed £200 million to support that transformation, but that will not touch the sides. Will the Secretary of State confirm that the Government will complete the project in full, as the Minister for Food Security and Rural Affairs called for in opposition, and commit the remaining £1.4 billion to protect our nation’s biosecurity and prevent an animal disease outbreak catastrophe?

[Steve Reed]

I am grateful to the hon. Gentleman, who raises an important point. However, I find it a little ironic that Conservative Members are calling for this Government to commit to spending that their Government never committed to. The Weybridge biosecurity facility is so dilapidated that it faces obsolescence by the early 2030s—that is the legacy that the Conservatives left. The £208 million that we have committed will start the process of improving those facilities, and through the spending review phase coming forward, we will consider how we can commit further funding to ensure biosecurity for farmers, which the Conservatives absolutely failed to do.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Merry Christmas to you, Mr Speaker, and to all here and beyond.

Farmers in my communities and across the country are genuinely devastated by the Government’s family farm tax, which will affect many in my patch who are on less than the minimum wage, and by the 76% cut in the basic payment next year. Perhaps what dismays farmers across our country and in Westmorland even more is that the overall agricultural policy of this Government and their Conservative predecessors is to actively disincentivise farmers from producing food, despite the fact that this country produces only 55% of the food we need. That is a dereliction of duty by both main parties, and a threat to national security. What plans does the Secretary of State have to change his policy and back our farmers to produce food?

[Steve Reed]

The hon. Gentleman raises a number of important points. I will repeat my earlier comments about agricultural property relief: the last year for which we have data available shows that the vast majority of claimants will not pay anything. Unlike the previous Government, who thought that farmers were not in it for the money, we want them to succeed, so we are embarking on a farming road map and a new deal for farming that will consider supply chain fairness and stop farmers being undercut in trade deals such as the one the Conservatives agreed with Australia and New Zealand. Our intention is to make farming profitable for the future; the Conservatives’ record is the 12,000 farming businesses that went bust.

[Munira Wilson (Twickenham) (LD)]

4. Whether he has made an assessment of the potential merits of putting the Drinking Water Inspectorate’s guidance on per- and polyfluoroalkyl substances on a statutory footing.

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[Mr Connor Rand (Altrincham and Sale West) (Lab)]

7. What progress he has made on reducing pollution in waterways.

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

The public are sick and tired of the scandal of sewage polluting our rivers, lakes and seas. That is why we are taking immediate action to place water companies under special measures through a new Bill that will give the regulator the power to ban the payment of undeserved bonuses for polluting water companies and bring criminal charges against persistent lawbreakers. We are also carrying out the biggest review of the water sector since privatisation to shape further legislation that will transform how our water system works and clean up our rivers, lakes and seas for good.

[Mr Rand]

Last year, there were 3,366 hours of sewage dumping into the rivers and streams of Altrincham and Sale West, leaving Sinderland brook, the Bollin and other waterways in a terrible condition. Will the Secretary of State outline further how the Government’s Water (Special Measures) Bill will ensure the end of sewage dumping into the rivers and streams of my constituency for good?

[Steve Reed]

I congratulate my hon. Friend on being such a champion for clean rivers in his constituency. As I said, the Bill will ban the payment of undeserved bonuses to water executives who are responsible for this kind of pollution, and will ensure instead that money is spent where it should always have been spent: on fixing the infrastructure, so that we can stop once and for all the kinds of sewage scandals that are creating the river pollution his constituents are so aghast to see on their doorstep.

[Ellie Chowns (North Herefordshire) (Green)]

Merry Christmas to you and your staff, Mr Speaker.

I declare an interest as co-chair of the all-party parliamentary group on water pollution. While I welcome the limited measures that the Government are taking to tackle pollution from the water industry, there is an elephant in the room, because agricultural pollution is just as important a source of pollution in our rivers, lakes and seas. What will the Secretary of State do to tackle the problem of agricultural pollution with the same degree of urgency and focus, and how will he support farmers—who themselves stand ready to take action to tackle this problem—by providing the funding, support and clear regulatory enforcement that is needed for a level playing field?

[Steve Reed]

I thank the hon. Lady for raising such an important issue, and I recognise that over 40% of pollution in our waterways comes from agricultural run-off. Sir Jon Cunliffe and the commission he is leading will look at all sources of pollution into our water. The budgets for more sustainable forms of agriculture that we have committed to will seek to reduce the use of fertiliser, so that there is less run-off into our water. The farming road map that we are working on with the farming community is also intended to reduce the amount of run-off from agriculture into our waterways, and we are looking at moving to a whole catchment-based model. We are looking at all sources of pollution into water so that we can clean up all of our rivers, lakes and seas, from whatever source the pollution comes.

[Mr Speaker]

I call the shadow Minister.

[Robbie Moore (Keighley and Ilkley) (Con)]

Thank you, Mr Speaker. I take this opportunity to wish you and all in the House a very merry Christmas.

Many customers are rightly concerned about Thames Water and the situation that company finds itself in. For the third time of asking the Secretary of State in this Chamber, will he confirm that he will not issue any regulatory easement to Thames Water in his discussions with that company, so that its environmental obligations and service commitments to its customers will not be reduced?

[Steve Reed]

The Government continue to monitor very closely what is happening in Thames Water, and indeed in all the other water companies. The only easement I have ever seen given to water companies over pollution was that of the previous Government, who turned a blind eye as sewage was flooding through our rivers, lakes and seas. This Government are putting the water companies under tough regulatory special measures—measures that the previous Government could have enacted, but failed to enact.

[James Asser (West Ham and Beckton) (Lab)]

8. What progress he has made on reducing electronic waste.

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[Danny Beales (Uxbridge and South Ruislip) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

I share customers’ anger about the water bill rises announced by Ofwat this morning. Customers have been left to pay the price of Conservative failure after the previous Government let companies spend millions of pounds on bonuses and shareholder payouts instead of investing in our crumbling sewerage infrastructure—if you find cracks in your house and do nothing about it for over a decade, the problem gets worse and the cost of fixing it escalates, and that is exactly what has happened to our sewerage system. We have introduced the Water (Special Measures) Bill to curb unjustified bonuses. Money earmarked for investment will be ringfenced so that it can be spent only on infrastructure, rather than bonuses and shareholder payouts, as happened under the Conservatives. I have appointed Sir Jon Cunliffe to lead a commission into the regulation of the water industry so that the failures that led to today’s bill rises can never happen again. This Government will end the Tory sewage scandal once and for all.

[Danny Beales]

Recent investigations have shown that a lack of investment in drainage infrastructure has contributed to significant flooding in Uxbridge and South Ruislip. How will water companies including Thames Water be held to account where their lack of investment blights communities through repeated flooding?

[Steve Reed]

The Government of course recognise the importance of and need for a robust drainage system, but my hon. Friend will be aware that the previous Government failed to ensure adequate investment to maintain and upgrade it. Water companies have a duty to ensure that the area they serve is effectively drained. This includes drainage of surface water from the land around buildings as well as the provision of sewers.

[Victoria Atkins (Louth and Horncastle) (Con)]

I wish a merry Christmas to everyone in the House, and also to everyone in our farming, food, hospitality and water sectors. But not everyone will be able to celebrate Christmas. In recent weeks, a farmer took himself off to a remote part of his farm and killed himself. The message he left his family, who wish to remain anonymous, is that he did this because he feared becoming a financial burden to his family because of changes to inheritance tax. This is the human cost of the figures that the Secretary of State provides so casually. What does the Secretary of State say to that grieving family?

[Steve Reed]

I extend my heartfelt sympathies to that family, but I think it is irresponsible in the extreme to seek to weaponise a personal tragedy of that kind in this way. Where there is mental ill health, there needs to be support for that, and this Government are investing in it. The right hon. Lady knows from the last year for which data is available that the vast majority of claimants will pay absolutely nothing following the changes to agricultural property relief.

[Victoria Atkins]

How heartless and how extraordinary that the Secretary of State is more discomfited by being presented with the facts of the consequences of his policy than the reality of what this policy ensures. I was a Minister for seven and a half years, and I have never seen a policy have the consequences that this one has. [Interruption.] Members of the public will see Labour Members reacting in that way because I have dared to present them with the facts. We know that there is a tragically high suicide rate among the farming community. The National Farmers Union gave evidence about this, and the Secretary of State has been told repeatedly. Will he collect data on a monthly basis of suicides from farmers, farming families, landowners and family businesses, so that we, the House and the outside community can understand the human costs of this tax policy before it comes into force?

[Steve Reed]

Mental health services are the responsibility of the national health service, and the former Health Secretary, who broke the NHS, is in no position to lecture anybody about public services. She was no friend of the health service and mental health services, and she is no friend of farming. Some 12,000 farms went bust on the Conservatives’ watch. They failed to get £300 million out the door and into the pockets and bank accounts of farmers, and they signed a trade deal with Australia that undercut British farmers on environmental and welfare standards. I hear the posturing, but it is this Government who are standing up for farming.

[Patrick Hurley (Southport) (Lab)]

T3. I recently met farmers in the northern parishes of my constituency, and they told me about the urgent need for improved water management to protect farmland. They want to establish an internal drainage board for flood management, but they cannot take action to set it up until the necessary statutory instrument is in place. Given the importance of establishing an IDB in my area, will the Minister commit to working with me and stakeholders to reduce flood risks, and will she outline when the statutory instrument for an IDB in my area might be put before the House?

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[Ben Maguire (North Cornwall) (LD)]

T4. North Cornwall has world-class beaches and rivers, but Santa swims have been cancelled due to the constant dumping of raw sewage. Meanwhile, water companies receive millions from bill payers, but then the very next day, they give it away to their shareholders. Does the Secretary of State agree that the best gift he could give my constituents this Christmas would be a total ban on water bill rises until South West Water bosses finally end this scandal?

[Steve Reed]

The hon. Gentleman is right to point to the scandalous situation that the previous Government left our waterways in, with record levels of pollution and raw sewage filthying our rivers, lakes and seas. I have appointed Sir Jon Cunliffe to lead a commission to review governance and regulation so that we can stop it ever happening again.

[David Smith (North Northumberland) (Lab)]

I welcome the landmark £5 billion agriculture budget announced in the Budget, which is the biggest-ever budget for sustainable farming. My farmers in North Northumberland desperately need that money. In that context, what more can the Secretary of State do to push for his Department to get that money out the door in a way that the previous Government did not?

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[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

It would be helpful if the Secretary of State encouraged Sir Jon to engage with parliamentarians across the House. The necessary changes that he has outlined will take time, however. The truth of the matter is that if those who currently have responsibility were to change their culture and focus on outcomes for customers, rather than their own internal processes, we might see earlier improvements.

[Steve Reed]

There will be an opportunity for Members to engage with Sir Jon Cunliffe’s commission in January, and I am sure that the right hon. Member’s Committee will want to do precisely that. The Water (Special Measures) Bill, which is going through Parliament right now, is intended to make quick changes to the system. Sir Jon’s review will give us the chance to reform regulation and governance for the long term.

[Jenny Riddell-Carpenter (Suffolk Coastal) (Lab)]

I recently met the Alde and Ore Estuary Trust, which has long been campaigning and fundraising to refurbish and secure flood defences on the Alde and Ore estuary. Will the Minister meet me to discuss the trust’s projects and the barriers to progress?

Water Bills: Price Review 2024 Final Determinations

Steve Reed Excerpts

Thursday 19th December 2024 Written Statements

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

Our water system needs fixing. Our rivers, lakes and seas are choked by pollution.

Under the Conservatives, our sewerage system crumbled. They irresponsibly let water companies divert customers’ money to line the pockets of their bosses and shareholders.

The public are right to be angry after they have been left to pay the price of Conservative failure.

This Labour Government will ringfence money earmarked for investment so it can never be diverted for bonuses and shareholder payouts. We will clean up our rivers, lakes and seas for good.

Ofwat, the independent economic regulator, has today published its final determinations for price review 2024. This independent process sets the prices water companies can charge customers in the form of water bills over five years. This includes a confirmed £104 billion of water company expenditure over the next five years—2025 to 2030. This is the highest level of investment in the water sector since privatisation. This investment will be crucial to deliver the improvements in the sector that the public expect to see.

In the next five years, the increase in bills is expected to pay for:

£12 billion investment to reduce harm from storm overflows which will reduce storm overflow pollution by 27%, including upgrading more than 2,800 storm overflows.

An £8 billion investment to boost water supply, including progressing nine new reservoirs.

Leakage reduction of 17%—taking it to the lowest since privatisation.

30,000 new jobs across the country.

While this much-needed investment in the sector is welcomed, no one wants to see these bill rises, but customers have been left to pay the price of Conservative failure.

This Labour Government will ensure that this can never happen again by ringfencing money earmarked for investment, so it is spent on cutting sewage spills and improving services for customers—not on bonuses and shareholder payouts. If the money is not spent how it was intended, it will be refunded to customers.

We expect water companies to put robust support in place for customers that are struggling to pay their bills, and ensure customers know how to access it. This includes:

Bill discount schemes such as WaterSure and social tariffs.

Actively offering payment breaks or payment holidays.

Adjusting payment plans urgently to help with sudden changes in household finances.

Simplifying the processes for customers to get extra assistance.

Helping customers get advice on benefits and managing debts.

Going forward, we have a plan to fundamentally reset the water sector—so we are not just fixing past failure, but also unlocking opportunities for the future.

We are putting accountability back at the heart of our water system. The Water (Special Measures) Bill will put a stop to the behaviour that has so enraged the public. It will strengthen regulations, including new powers to ban the payment of bonuses for water bosses if environmental standards are not met and bring criminal charges against lawbreakers, with new, tougher penalties including imprisonment when companies obstruct investigations.

We have launched an independent commission into the water sector and its regulation to put customers first, transform how our water system works and clean up rivers, lakes and seas for good. This is expected to form the largest review of the industry since privatisation.

This is a once in a generation chance to reset our water sector and deliver the change we all want to see. After years of pollution and decline, it is time to invest in new opportunities and restore our clean rivers, lakes and seas.

[HCWS345]

Water (Special Measures) Bill [Lords]

Steve Reed Excerpts

2nd reading
Monday 16th December 2024 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

I beg to move, That the Bill be now read a Second time.

I am delighted to open the Second Reading debate on the Water (Special Measures) Bill—something I hope the whole House will consider to be an early Christmas present. I thank the noble Baroness Hayman of Ullock for her outstanding leadership of the Bill during its passage through the House of Lords, where it quite rightly won support from all sides.

Our rivers, lakes and seas are part of our beautiful British landscape and have been enjoyed by generations. Our countryside is one of the things that makes us proudest to be British, but that pride too often turns to dismay because in too many parts of our country, the local river, lake or beach has been made filthy by pollution. People worry that the places they enjoyed when they were younger are no longer there for their own children or grandchildren. No parent should have to worry that their child might get sick from splashing around in the local sea or river. Our green and pleasant land is no longer quite so pleasant. Our rivers, lakes and seas are being choked by record levels of pollution from untreated sewage, as well as chemicals and run-off from agriculture and highways.

The Bill is not just about the desecration of water running through our countryside. Clean water is essential for every home and business up and down the country. It is one of the essential foundations of our economy, our communities and our national security. We use water to cool power stations, generate electricity, supply our leisure industries and grow the food that feeds us, but our water infrastructure is under increasing strain. It is outdated, inadequate and crumbling. The situation is made worse by our changing climate, with more frequent and severe rainfall, floods and droughts. Water supplies to homes and businesses are disrupted too frequently in some parts of the country. I have spoken to residents in Hastings and Rye who were rightly furious at the inadequate information, lack of alternative supply and little to no compensation when yet another outage happened in their locality.

[Helena Dollimore (Hastings and Rye) (Lab/Co-op)]

I thank the Secretary of State for the work he and his Department are doing to change the compensation rules so that when these incidents happen, my constituents get higher levels of compensation—something that the Conservatives had 14 years to do, but failed to do. Had they acted in that time, my residents would not be left without compensation for the incidents that have happened in Hastings, Rye and the villages.

[Steve Reed]

I pay huge credit to my hon. Friend. She has been such a champion for her communities in Hastings and Rye, demanding the better water services they deserve.

The failure to invest in our water infrastructure means that the demand for clean drinking water will start to outstrip supply as early as the mid-2030s. Without urgent action, some parts of the country would then face water rationing. The water system is broken but, instead of fixing it, the previous Conservative Government just stood back and watched as our water infrastructure crumbled into disrepair. Instead of strengthening regulation to ensure water companies invested sensibly and at the right time, the Conservatives hobbled the regulator and let water companies divert millions of pounds into wholly unjustified multimillion-pound bonuses and dividend payments.

[Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)]

Does the Secretary of State share my amazement that under the previous Conservative Government organisations had to campaign to have sewage-free rivers, lakes or seas, as if it were some kind of privilege rather than a right for everyone? Does he have any idea of the amount of money that was taken out of the sector, and out of the infrastructure we needed, in profits and bonuses under that Government?

[Steve Reed]

I agree that it is indeed amazing. I know that all of us on the Labour Benches, and perhaps on the Opposition Benches too, share the public’s anger at what happened to our rivers, lakes and seas.

The legacy of 14 years of Conservative Government is the highest level of sewage spills on record, economic growth held back by a lack of water supplies, and now potentially painful bill rises to fix the problems they left behind.

[Jerome Mayhew (Broadland and Fakenham) (Con)]

The Secretary of State says there was the highest level of spills on record. How does he know? When Labour was in power previously, only 7% of sewage outlets were even monitored.

[Steve Reed]

I have to say to the hon. Gentleman that there is very little point in monitoring sewage in the water if all you do is watch the sewage increase and keep on flowing into our rivers, lakes and seas. The Conservatives seem to be satisfied with the failure they presided over. The Labour party will fix the problem that they left behind.

If you find cracks in the wall of your house and ignore it for years, the problem gets worse and the cost of putting it right escalates. That is exactly what the Conservatives did to our water system. They refused to bring in the investment early enough, so ageing infrastructure crumbled even further and the cost to bill payers has rocketed.

[Charlie Maynard (Witney) (LD)]

We are about a month away from Thames Water signing up for another £3 billion of debt. If that happens, 46% of the bills of every customer in that catchment will be spent on interest expenses, and that is without even paying down the £20 billion of debt. How is that helping anyone?

[Steve Reed]

I thank the hon. Gentleman for his intervention. One of the reasons the Government commissioned a review into governance and regulation is because of the failure of the current system that the previous Government allowed to continue.

I share customers’ anger about the scale of water bill rises they seem likely to face. They are rightly furious at being left to pay the price of Conservative failure. I am grateful that the party opposite has indicated support for the Bill. It is just a shame its support has come so late. In December last year, while they were still in government, I called a vote on introducing a ban on unjustified bonuses for water bosses, but they refused to do it. They could have acted at any point over the past 14 years, but they would not do it. There have been many times in history when Labour has had to clean up the Tories’ mess, but rarely quite so literally as cleaning up the raw sewage polluting our country’s waterways.

[Mr Richard Holden (Basildon and Billericay) (Con)]

I thank the Secretary of State for giving way. Does he acknowledge, though, that under the previous Labour Government we saw none of the massive capital investment that we are seeing now with the Thames tideway tunnel, which was started under the Conservative Government in 2016? It will be completed next year and is one of the biggest changes to removing sewage from our waterways in history.

[Steve Reed]

The Conservatives had 14 years to fix the system and they chose to do absolutely nothing. They have left it to the incoming Labour Government to clear up the mess they left behind.

The truth is that the water sector needs a complete reset. It needs reform that puts customers and the environment first for once, and a new partnership with the Government to invest for the future and upgrade our water infrastructure.

[Calum Miller (Bicester and Woodstock) (LD)]

My constituents do not understand why they may be facing a 50% price increase from Thames Water, partly to service a £3 billion loan. The Secretary of State talks about resetting the water industry. Will he consider taking Thames Water into a special administrative regime, so it can be properly reset and the inappropriate debt built up under the previous Government written off to the benefit of taxpayers and consumers?

[Steve Reed]

There is a process by which any company would go into administration. That situation has not yet arisen with any company. The Government are, of course, closely monitoring the situation with Thames Water, but as things stand the company remains viable and I reassure consumers in that area that there is no threat, and would be no threat, to water supply in any circumstance.

The Government have a three-stage plan to deliver change and bring in the biggest ever investment in our water sector. That started with the initial reforms I announced in the week following the general election. It continues with the Bill before the House today. It will be completed with the water commission, led by Sir Jon Cunliffe, and further legislation that will follow on from that.

In my first week as Environment Secretary, I met water company chief executives and announced a set of immediate reforms to start the process of change. Money earmarked for investment to upgrade water infrastructure will now be ringfenced, so it cannot be diverted for other purposes, including paying bonuses or dividends. If it is not spent on what it was intended for, it will be refunded back to customers as discounts on their bills. Water companies agreed to formally change their company objectives to place customers and the environment at the heart of everything they do. They will set up powerful new customer panels to scrutinise key decisions. Customers who face frequent water outages—like the constituents my hon. Friend the Member for Hastings and Rye (Helena Dollimore) talked about—or contaminated tap water, as residents and businesses experienced in Brixham in Devon, will now receive more generous compensation and they will get it faster.

We promised in our manifesto to put water companies under special measures to clean up our water. The core provisions of the Bill do precisely that by strengthening the powers of the regulators and holding water companies to account for poor performance.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

The Secretary of State rightly talks about the role that regulators have to play, whether that is Ofwat or the Environment Agency. While the water companies were getting away with what they were doing, the Conservative party took huge amounts of money out of the EA. Independent figures from Unchecked UK suggest an 88% reduction in enforcement activities, and that a 50% reduction in the environmental protection budget led to a 60% reduction in activity. Will he set out more on how regulators will be key to clearing up our water industry?

[Steve Reed]

Absolutely. My hon. Friend makes some extremely important points. In my speech, I will be coming on to how we intend to ensure the regulator not only has additional powers but additional resources to enforce those powers.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

On compensation, sewage discharges have a massive impact on the local economy in places like Cleethorpes in my constituency, which relies on holidaymakers to support our tourist and hospitality economy. Will the compensation extend to businesses, or will those companies which are put under special measures be required to support other local businesses that are hampered as a result of sewage discharges?

[Steve Reed]

That is an important point. Polluted water does not just damage people’s health; it damages the health of local economies as well, and the compensation will extend to businesses in a way that it previously did not.

The Bill gives Ofwat legal powers to ban bonuses if water company executives fail to meet high standards. It will introduce stricter penalties, including imprisonment, when senior executives in water companies obstruct investigations by environmental regulators, and it includes provisions to allow automatic and severe fines to be imposed for wrongdoing. When increased costs are a result of penalties being issued by the regulators, for instance under the new automatic penalties regime, penalties will come out of water company profits and not from customers.

[Ms Polly Billington (East Thanet) (Lab)]

In evidence given to the Environment, Food and Rural Affairs Committee, Ofwat confirmed that had the measures to ban bonuses been in place earlier, the boss of Southern Water—which covers my constituency—would not have received his most recent bonus. It was Tory inaction that allowed it.

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[Steve Reed]

My hon. Friend is a doughty campaigner for cleaner water for her constituents, and she is quite right. If millions of pounds had not been diverted unnecessarily and unfairly into bonuses, that money could have been invested in improving the broken water infrastructure.

The Bill will go further by expanding the cost recovery powers for the Environment Agency, Natural Resources Wales and the Drinking Water Inspectorate. That means that water companies will bear the cost of enforcement activities, in line with the “polluter pays” principle, while also giving regulators the extra resources needed to hold water companies properly to account.

[Munira Wilson (Twickenham) (LD)]

As the Bill seeks to strengthen the regulation of our water companies, is this not an opportunity to finally regulate the existence of perfluoroalkyl and polyfluoroalkyl substances in our water? Those highly toxic chemicals can be linked to serious health conditions. Scotland, the European Union and United States have put guidance on a legal footing. Why is the Secretary of State not using this opportunity to regulate the presence of PFAS in our drinking water, and to protect our health and that of our children?

[Steve Reed]

I recognise the point that the hon. Lady is making, and the Water Minister, my hon. Friend the Member for Kingston upon Hull West and Haltemprice (Emma Hardy), will be pleased to meet her to discuss it further.

This Government will not let water companies get away with abuses that the last Government did nothing to stop. The Bill will open up the sector to greater scrutiny by ensuring that there is consistency and transparency in the reporting of pollution. It requires water companies to report in near real time on discharges from emergency overflows which at are present largely unmonitored. It requires water companies to consider the use of nature-based solutions such as reed beds, wetlands and tree planting when they develop their drainage and wastewater management plans. That will ensure that they consider all possible opportunities to use sustainable approaches that benefit the environment as well as managing water more effectively.

[Ben Coleman (Chelsea and Fulham) (Lab)]

I am extremely encouraged by what the Secretary of State is saying. In my constituency—I have been following this for well over two years—the amount of sewage discharge has been absolutely contemptible. In 2023 alone, Thames Water pumped sewage into the river 116 times, for 990 hours, even when it was not raining. I am heartened to hear that, unlike the last Government, our Government intend to take serious measures to ensure that bosses are forced to clear up the mess that they create, and stop them doing it. Can the Secretary of State reassure me that, unlike the last Government, he will ensure that the regulators use the powers they are given and do not behave as feebly as they have for the past 14 years?

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[Steve Reed]

My hon. Friend is right to make that point. We are not just giving the regulators more teeth; we are also giving them more resources to ensure that they can carry out enforcement against those responsible for wrongdoing.

The Bill requires Ofwat to consider how it can contribute to achieving targets set under the Environment Act 2021 and the Climate Change Act 2008 when carrying out its functions. Together, these measures will ensure that water companies serve customers and the environment far better in future.

[Amanda Martin (Portsmouth North) (Lab)]

Does the Secretary of State agree with me, and with my constituents, that sewage pumped 193 times for 404 hours, in the context of £41 million in bonuses, produces angry residents, un-swimmable seas and potential bill rises—in short, a real faeces show—and does he agree that it cannot happen again?

[Steve Reed]

I am grateful to my hon. Friend for explaining why her constituents are so angry about the situation, and why the Bill is so necessary as we start to turn the water industry around so that it serves customers and the environment better than it did previously.

I want to reassure the House that although water is a devolved matter, my Department has engaged with the devolved Governments of Wales, Scotland and Northern Ireland throughout the development of the Bill. All its provisions will apply to both England and Wales, and we will continue to work closely with our Welsh counterparts as it progresses.

[Kit Malthouse (North West Hampshire) (Con)]

rose—

[Steve Reed]

I hope that Members will allow me to make some progress. I am worried about how much time I am taking, given that so many other Members want to contribute to the debate.

The Bill is just one part of the Government’s ambitious and long-term approach to fundamentally transforming the water sector. Together with the Welsh Government, I have commissioned Sir Jon Cunliffe, the distinguished former deputy governor of the Bank of England, to lead an independent commission on the future of the water industry. It will be the most comprehensive review of the industry since its privatisation 35 years ago.

[Several hon. Members rose—]

[Steve Reed]

I will make some progress, if Members do not mind.

The commission will review regulation and governance from the bottom up to ensure that we have a robust framework that can attract the significant investment that is needed to clean up our waterways, while guaranteeing future water supplies, restoring public confidence and promoting economic growth. Sir Jon will be supported by an advisory group covering areas including the environment, public health, engineering, customers, investors and economics. The commission will seek advice from stakeholder groups, including environmental campaigners, consumer champions, water companies, regulators and the public, and it will make recommendations by June 2025. This is our opportunity to completely reset the water industry so that it is fit for the future and can finally move on from the failures of the past.

I want to thank my hon. Friend the Member for Hull West and Haltemprice, who will steer the Bill through this House. I know that she will lead this work with the expertise and passion for which she is well known across the House. No one is better suited to lead our Department’s first piece of primary legislation under the new Government.

This Bill is our chance to right the wrongs that have so angered members of the public up and down the country. Water pollution is not inevitable and it is not acceptable.

Our children and grandchildren deserve to make the same wonderful memories that we did, splashing about in clean rivers, swimming in the sea or playing on the shores of our beautiful lakes, without fear of getting sick. It is time to clean up our water once and for all, and the Bill is an important step in making that happen. Let us seize the opportunity to give this country back the clean rivers, lakes and seas that are our shared birthright.

[Madam Deputy Speaker]

I call the shadow Secretary of State.

Storm Bert

Steve Reed Excerpts

Monday 25th November 2024 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

With permission, Madam Deputy Speaker, I would like to update the House on Storm Bert. The storm brought heavy rain, high winds and snow across the UK over the weekend. The flooding Minister—the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Kingston upon Hull West and Haltemprice (Emma Hardy) —and I are receiving regular updates on the flooding in England. Our thoughts and our sympathies are with all those who have been affected.

This morning, I held an emergency meeting with Environment Agency chief executive Philip Duffy to discuss the flooding response and ongoing plans to protect communities. I was briefed on the latest situation, the 24/7 response being led by the Environment Agency and the emergency services, and the actions being taken to further protect communities in the coming days, with river levels expected to rise further in some places. We discussed how to bolster the response from the Environment Agency, emergency services and local authorities, if required.

Flooding in Wales, Scotland and Northern Ireland is dealt with by the devolved authorities. The Prime Minister spoke to the First Minister for Wales on Sunday, and the Welsh Government have activated their crisis management arrangements in support of the local response. We have offered additional support to our colleagues in Wales if and when that is required.

I would like to put on record my thanks to the emergency responders, local authorities and the Environment Agency for their immense efforts to help communities across the country. Around 28,000 properties have been protected by Environment Agency flood defences. Unfortunately, an estimated 107 properties have flooded across England, principally from river and surface water flooding. While Storm Bert has now passed, we will continue to see the impacts of this weekend’s heavy rainfall over the next few days. Environment Agency staff are continuing their work across the country, and are engaging closely with local resilience forums and local responders, with arrangements in place to scale up their response if and when that is needed.

As of 4 pm today, there is one severe flood warning in place, with 120 flood warnings and 145 flood alerts in force across England. A severe flood warning, which reflects a danger to life, was issued in the early hours of this morning. It relates to the Billing Aquadrome on the River Nene in Northamptonshire, where the caravan park was safely evacuated. This is the fourth time the aquadrome has been flooded in recent years, and I would like to thank local responders for their swift actions to protect those most at risk.

The Environment Agency and local responders have also been busy protecting properties elsewhere in England, including flooding from the River Teme in Tenbury Wells, where around 40 properties have flooded. The river has now peaked, and local responders will be focusing on the lower reaches of rivers over the next few days. There has been a focus on the Calder valley in west Yorkshire, the River Weaver in Cheshire and the River Avon in Bath, including Chippenham and Bradford-on-Avon. Further flooding is, sadly, likely over the next few days, as water levels rise in slower-flowing rivers such as the Severn and the Ouse. The Environment Agency anticipates that any impacts should be less severe than we have seen in recent days.

Storm Bert also caused disruption to road and rail networks. Our transport industry has well-established plans to respond to severe weather and get affected transport networks running smoothly as quickly as possible. National Highways, local highway teams and Network Rail staff have been working all weekend to reduce floodwater and remove fallen trees from roads and railways. Unfortunately, residual floodwater is affecting the great western main line, the midland main line and other branch lines, and this continues to affect passengers’ journeys. The safety of passengers, train crew and staff is always the top priority, and railway lines will be reopened as soon as it is safe for trains to run.

Climate change will inevitably lead to more severe weather of the kind we have seen this weekend. As Environment Secretary, I have made it my priority to improve our flood defences and drainage systems to keep people and businesses safe. This Government inherited flood defences in the worst condition on record following years of under-investment by the previous Government. Over 3,000 of our key flood defences are below an acceptable standard. That is why we are investing £2.4 billion over the next two years to build and maintain flood defences.

We have also set up a new floods resilience taskforce to make sure there is better co-ordination between central Government and the frontline agencies on the ground up and down the country. This brings together organisations including the Association of Drainage Authorities, the National Farmers Union, local resilience forums, and emergency responders. It is key to strengthening resilience in the face of floods, and it met for the first time in September to prepare for the autumn and winter.

We have provided £60 million in the recent Budget to help farmers affected by the unprecedented flooding earlier this year, and I am pleased to tell the House that the bulk of the payments are already in farmers’ bank accounts. We have confirmed that an additional £50 million will be distributed to internal drainage boards to manage water levels to protect agriculture and the environment, and we will launch a consultation in the new year which will include a review of the existing flood funding formula to ensure challenges facing businesses and rural and coastal communities are taken into account when delivering flood protection. We aim to bring in that new approach from April 2026.

I repeat my thanks to the emergency services, local authorities and the Environment Agency for their work to keep communities safe during Storm Bert. I will continue to receive updates from the Environment Agency and its teams on the ground, and I will continue to ensure that Members across the House are contacted when flooding affects their constituency.

[Madam Deputy Speaker (Judith Cummins)]

I call the shadow Secretary of State.

[Victoria Atkins (Louth and Horncastle) (Con)]

I thank the Secretary of State for advance sight of his statement.

Storm Bert has had, and continues to have, terrible impacts across the United Kingdom. Our thoughts are with the loved ones of those who have lost their lives in recent days as well as the people whose homes and businesses have been devastated and all the communities affected by flooding and this weather. I understand the distress, the anger and, frankly, the exhaustion many will be feeling today as they contemplate the process of rebuilding their homes, businesses and communities because my own constituency suffered terrible damage from Storm Babet a year ago. Residents need practical support quickly, and they also need some reassurance for the future.

I thank the emergency services, the local authorities and the Environment Agency for their efforts to help people quickly and often in dangerous circumstances, but I also thank the members of the public who have stepped in to help their neighbours and local communities in countless ways. They are the rays of kindness in what has been a dark weekend for many communities.

The Government need to focus on how help will be given to those who have been driven out of their homes, including the provision of decent temporary accommodation and the repair and reopening of schools, as well as the process for speeding up insurance claims so that residents can return home as quickly as possible. Knowing, as we do, sadly, from previous storms, how important Members across this House will be in helping their constituents, will the Secretary of State commit to ensuring that his Department sends a daily operational update to Members across the House so that Members may help their constituents assiduously?

Last week the Secretary of State’s Department will have received data from the Met Office about the severity of this storm and its likely impacts. So that we can understand the urgency that the Secretary of State gave to these warnings, will he please tell us about the discussions he had with the Environment Agency and the Met Office before the storm hit and when they were held, and what actions were implemented as a result of any such meetings?

The Secretary of State mentioned his Government’s floods resilience taskforce, which was set up to improve flood preparedness. It has met once since July, and its next meeting is next year. He has just said that its duty is to prepare for the autumn and winter. Can he list precisely the preparations arising out of that meeting and the practical impacts on communities up and down the country?

Regrettably, with the threat of flooding still present —indeed, as I rose to my feet, one severe flood warning and 120 flood warnings were still in place—the Secretary of State descended into playing politics. To correct him, I will just set out these facts, and there is a question for him to answer at the end. The last Conservative Government committed a record £5.2 billion from 2021 until 2027 to provide significantly improved flooding defences across the country. That is critical and long-standing infrastructure work. Will he confirm whether the £2.4 billion he has referenced is part of that £5.2 billion or in addition to it?

The Conservatives ringfenced £100 million to help those communities threatened repeatedly by flooding. It was called the frequently flooded allowance. Will the Government confirm the continuance of this fund and its ringfencing? When is the next assessment for that scheme? Can communities flooded through Storm Bert be included? We also set up the natural flood management fund to complement traditional bricks and mortar defences. Can the Secretary of State confirm that that will be continued? I note that the Secretary of State has mentioned funding independent drainage boards to the tune of £50 million. Can he confirm that the funding has been cut from the £75 million promised by the Conservatives, and why?

While I welcome the increase of £10 million in the Budget for the farming recovery fund, which was announced by the Conservative Government to support farmers for last year’s wet weather, can the Secretary of State confirm that he will announce new money to support farmers for this winter’s bad weather? Can he give comfort to the farmers watching that the Treasury will include adverse weather conditions and flooding as mitigations for its much criticised family farm tax?

I end by wishing every community, whether they are the subject of those flood warnings or watching their weather updates with great concern, a safe and comfortable few days ahead.

[Steve Reed]

I thank the right hon. Lady for her comments, and I echo her good wishes to people who have been affected by the situation. She refers to funding. I politely remind her that she was a Treasury Minister in the previous Government, who underfunded our flood defences and left more than 3,000 of them—the highest level on record—in an inadequate state. She asks about appropriate support on the frontline. The floods resilience taskforce exists to ensure that those on the frontline across the country—local authorities and the agencies responsible—were ready for this and other storms when they happen, and that appropriate support was in place for individuals, families and communities that may be affected. That of course includes those who are most vulnerable.

The Minister for Water and Flooding, my hon. Friend the Member for Kingston upon Hull West and Haltemprice (Emma Hardy) has already held a roundtable with insurance providers to ensure that we are speeding up support for those who are affected by flooding. The Environment Agency will keep Members regularly updated on the circumstances in their own constituencies. Turning back to funding, we have allocated £2.4 billion over the next two years, which is more per annum in each of those two years than the previous Government allocated for the current year.

[Madam Deputy Speaker (Judith Cummins)]

I call the Chair of the Environmental Audit Committee.

[Mr Toby Perkins (Chesterfield) (Lab)]

I entirely empathise with my right hon. Friend about what he has inherited. We have had the perfect storm of massive funding cuts to the Environment Agency with increased pressures from flooding as a result of climate change. Notwithstanding that, the need for improvements in our flood defences is urgent and critical. How can communities such as mine in Chesterfield, flooded by the Rother and Hipper rivers, engage with the work he is doing so that we can be more prepared, working with the Environment Agency to bridge the funding gap for the existing scheme on the River Hipper? My heart goes out to all the communities across the country that have been so appallingly flooded. They need to know how we can work with the Government to step up the urgency so that our country is more flood-prepared in future.

[Steve Reed]

I thank the Chair of the Environmental Audit Committee for his questions and of course sympathise with residents in his constituency who have been affected by the recent flooding, and indeed previous flooding. The Government are reviewing the flood funding formula to see how we can make it more effective. That includes nature-based flood management, such as planting more trees further upstream to help the land hold more water, so that less rainwater floods downstream to more populated areas where it can cause more damage. That consultation will involve businesses, rural communities, coastal communities and communities such as his all feeding in to ensure that we have a flood funding formula that works for every part of the country.

[Madam Deputy Speaker]

I call the Liberal Democrat spokesperson.

--- Later in debate ---

[Steve Reed]

I am grateful to the hon. Gentleman for his comments and questions. I share and echo his gratitude to Members across the House for the work they have carried out to support their local constituents and signpost them to appropriate support. We will be ensuring that the Environment Agency continues to engage with Members on that important work.

The hon. Gentleman will be aware of the very difficult financial inheritance that we had from the previous Government. In that context, I think the fact that we have been able to deliver an increase in funding for flooding is to be welcomed: £2.4 billion over the next two years means an increase in both years compared with the amount of funding provided by the previous Government for the current year.

The hon. Gentleman mentioned storm overflows. When we have these more severe episodes of rain, it is extremely distressing to see more storm overflows discharging sewage into rivers, lakes and seas. Sir Jon Cunliffe is leading a wider review into the failures of governance and regulation that have led to this situation, and I am sure that the hon. Gentleman and Liberal Democrat Members will engage with that. In addition, we are requiring every single outflow to be monitored so that we know what is going into our rivers and can take appropriate action, including through the strengthened powers under the Water (Special Measures) Bill.

[Nick Smith (Blaenau Gwent and Rhymney) (Lab)]

Storm Bert has been devastating for my constituents. In Cwmtillery, with its disused coal tips, 160 mm of rain fell in just 48 hours. Across Blaenau Gwent and Rhymney, homes have been washed out, children’s Christmas presents have been ruined and families without insurance are counting the cost. I hugely welcome the £25 million in the Budget for Welsh coalfield tip maintenance and safety measures; that makes a big difference. Given, though, the extraordinary weather that we saw on the weekend, will the Secretary of State please look again to see if further support will be available for coal tips in the future?

[Steve Reed]

I recognise the absolute devastation that my hon. Friend described, which homeowners and business owners will have felt in seeing their homes devastated by flooding. The Prime Minister contacted and spoke to the First Minister of Wales on Sunday. He made available any support that the Welsh Government may need to deal with the situation. That offer stands open, and we are ready to support colleagues in Wales if and when they require that, recognising that parts of Wales have been the hardest hit by Storm Bert.

[Llinos Medi (Ynys Môn) (PC)]

Plaid Cymru’s thoughts are with all those across Wales affected by Storm Bert. Confirmation of a coal tip landslip in Cwmtillery is extremely concerning and will lead to anxiety for others living near coal tips. Those tips are the legacy of an industry that extracted from Wales to enrich London, yet the UK Government have pledged just 4% of the £600 million needed to secure them. Will the Secretary of State commit to providing the full funding required?

[Steve Reed]

Again, I share the hon. Member’s concern about the situation. This is the first Government ever to have offered funding to support the problems of coal tips that she described. As I said in response to the previous question, the Prime Minister has made it clear to the First Minister of Wales that the Government stand ready to provide more support to the Welsh Government if that is required.

[Josh Fenton-Glynn (Calder Valley) (Lab)]

This weekend, much of my constituency was under a severe flood warning. Businesses, roads and homes were flooded. We were luckier than in previous years in terms of severity, but in places it was agonisingly close, with rivers centimetres away from breaking their banks. Calder Valley has had two major floods in the past decade, and the fact that we avoided the same level of destruction this time was in no small part because of the work of local flood wardens, natural flood management organisations such as Slow The Flow and Calderdale council. I pay tribute to them.

It is almost a decade since the serious floods in Calder Valley on Boxing day 2015. We had further floods in 2020. While the Environment Agency has carried out flood prevention works in Mytholmroyd and Brighouse, it has not even made a start on planned schemes in Hebden Bridge and Elland. Will the Minister meet me to discuss the plans we have upcoming and get some action from the Environment Agency? My constituents are understandably really anxious.

[Steve Reed]

I thank my hon. Friend very much for his question. I am sure that his constituents will be pleased to hear of the increase in funding over the next two years to support areas that are affected by flooding as well as the review to the flood funding formula that we are consulting on to ensure that we are taking the most appropriate and effective steps necessary to protect communities and businesses from flooding. I am sure that my hon. Friend the Minister for Water and Flooding will be more than happy to meet him to discuss his constituency concerns.

[Simon Hoare (North Dorset) (Con)]

It is not the silver bullet, but given the severity of the situation over the weekend, every little helps. Will the Secretary of State—he will earn huge plaudits if he is able to pull this off—convince the Environment Agency that it would be helpful to many communities in North Dorset, the south-west and elsewhere to increase the capacity of our rivers through a managed programme of dredging? We are losing capacity. Last week I saw a river where two arches of a bridge were entirely silted up. That is losing 20% of capacity. It is not the silver bullet, but capacity improvements would help.

[Steve Reed]

I thank the hon. Gentleman for his comments. I know his constituency well and I know what a champion he is for communities there. I am sure that he will welcome the fact that we are reviewing the formula with the Environment Agency, to look at precisely what actions would be most effective to protect communities in whichever part of the country they find themselves in, including his very beautiful part of Dorset.

[Barry Gardiner (Brent West) (Lab)]

Last July, the previous Government issued its third national adaptation plan, and this March the Climate Change Committee issued its independent assessment of NAP3. It said that it falls far short of what is needed, that it lacks the pace and ambition to address growing climate risks—which we are already experiencing—and that it fails to set out a compelling vision for what the Government’s well-adapted UK entails, with only around 40% of the short-term actions to address urgent risks identified in the previous climate change risk assessment.

Will the Secretary of State ensure that the key recommendations of the Climate Change Committee in its assessment of NAP3 are implemented and that an urgent refresh of NAP3 takes place, to strengthen it and avoid locking in additional climate impacts? Key reforms must be implemented over the next year, along with enforcement. Those are the recommendations of the Climate Change Committee. Can he assure the House that he is taking those seriously and moving them forward?

[Steve Reed]

My hon. Friend is right to point to the impact of climate change through the much more frequent severe weather incidents that we are seeing, whether droughts in the summer or floods at this time of year and through the winter. That is why we are reviewing the formula and our approach to managing flooding. We take the reports and views of the committee very seriously as we continue to look at how best to adapt to the challenges that climate change presents to the whole country.

[David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)]

People living in former mining communities across south Wales deserve greater reassurance on what the Government will do about coal tips. Can the Secretary of State explain what exactly they will do to make these tips safe, particularly when it comes to the live monitoring of any movement and early warning systems?

[Steve Reed]

There is a programme to improve the maintenance of coal tips, which is underway through the Welsh Government. As I said, this is the first Government to allocate funding to tackle that risk and its very serious implications for people and communities living in affected areas.

[Rachael Maskell (York Central) (Lab/Co-op)]

I am grateful to the Environment Agency for protecting much of my constituency. However, businesses still continue to flood. Could the Secretary of State say what he is doing to review the remit of Flood Re, so that businesses, leaseholders and properties built after 2009 can be covered by the Flood Re scheme, which really does help people through times of flooding?

[Steve Reed]

As I have indicated, the Minister for water, my hon. Friend the hon. Member for Kingston upon Hull West and Haltemprice (Emma Hardy), has already chaired a roundtable with insurance providers, including Flood Re, to look at what more can be done to provide support. As things stand, 99% of the most high-risk households can get quotes from over 15 insurance providers, and four out of five homeowners with claims have seen a 50% reduction in their insurance premiums. We are looking at what more can be done for businesses through the British Insurance Brokers’ Association.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

I associate myself with the words of gratitude paid by the Secretary of State to all those who have helped over the weekend. The House will know that I have raised the situation of Tenbury Wells many times. It is devastating to hear that it was flooded again this weekend. I do not know whether the Secretary of State, in his meeting with Philip Duffy this morning, was told that there is a really well advanced design for flood defences for Tenbury Wells, which has been substantially funded thanks to previous funding allocations. I wonder if he could find it in his heart—and in his £2.4 billion over the next two years—to get that scheme over the line.

[Steve Reed]

I know the hon. Lady’s constituents will be very grateful for her championing of their cause, particularly given the flooding that we have seen over the weekend. The funding allocations will be made in the usual way by the Environment Agency, working through its regional flood and coastal committees and engaging with local stakeholders. I am sure that she will make sure her voice and that of her constituents are heard, as she makes a powerful case for funding those flood defences.

[Catherine Fookes (Monmouthshire) (Lab)]

The Secretary of State will know that my constituency has some of the mightiest and most beautiful rivers, including the Wye, the Usk and the Monnow. But having those incredible rivers means that we are really at risk of flooding. Yesterday we had two severe flood warnings. They have been downgraded today, but there are still five flood warnings, some of which are on the River Wye, which, as my right hon. Friend knows, runs through England and Wales. I want to express my gratitude to Monmouthshire county council, South Wales Fire and Rescue and all those in the community who helped, particularly Darren in Skenfrith, who has been up for 36 hours helping the community. That community has been flooded four times in the last three years. Can the Secretary of State please assure me that he will encourage Natural Resources Wales and the Environment Agency to work together to solve those flooding problems on cross-border rivers?

[Steve Reed]

My hon. Friend makes a very important point. We need to ensure that the agencies with responsibility for the same rivers or catchment areas and that operate cross-border work as effectively as they can. I will make sure that those points are conveyed to both agencies.

[Seamus Logan (Aberdeenshire North and Moray East) (SNP)]

I thank the Secretary of State for an advance copy of his statement. The thoughts of my Scottish National party colleagues and I are with the families of those who have lost their lives during Storm Bert. I also associate myself with his remarks on the response of the emergency services.

Many unnamed storms occur in Scotland, and in my constituency in particular. For example, a part of the seawall in Gardenstown came down recently. I am sure that Storm Bert has made that worse. I note the Secretary of State’s comments regarding additional support that could be given, and will he confirm that, with the coming storms that we expect in Scotland, he will be able to make the same commitment for Scotland as well?

[Steve Reed]

Of course, the Government will stand ready to support and help the devolved authorities whenever they face circumstances like these.

[Matt Rodda (Reading Central) (Lab)]

My thoughts are with all those affected over the weekend. I also thank everyone who has been protecting the public at this very difficult time. The levels on the River Kennet, which is a tributary of the Thames—and indeed the Thames itself—have been rising to dangerous levels in recent hours. Could the Secretary of State provide an update on specific matters in the Thames valley region, in particular the flood defence schemes in the Reading area and the vital work that he is preparing to do upstream to plant more trees and to rewild to avoid flooding?

[Steve Reed]

I am sure that my hon. Friend will welcome our proposals to review the formula so that we can look at nature-based flood management in the way that he described. I will ask the Environment Agency to contact him with an update on what is going on in his constituency, and what further action is being taken as the river continues to rise to ensure that his constituents are kept safe.

[John Glen (Salisbury) (Con)]

I thank the Secretary of State for his statement. I also acknowledge the enormous work done by Philip Duffy in the Environment Agency. He came down to visit my constituents in Britford in the first quarter of this year and made an enormous impact. In addition to the £30 million, for which the people of Salisbury are very grateful, for the Salisbury river park scheme that has just completed, it is important that smaller schemes, driven by parishes such as Britford parish council, are given licence to combine both their own precept and investment from the Environment Agency to come up with bespoke schemes. Will the Secretary of State ensure that attention is given by the EA to how it can give as much flexibility as possible, so that small schemes can also move forward at parish level?

[Steve Reed]

I echo the right hon. Gentleman’s comments about Philip Duffy at the Environment Agency and all his colleagues, who are doing an incredible job—they always do, every time storms hit. The right hon. Gentleman makes a very important and interesting point about how we can better tie up different approaches to funding. I will take that back and discuss it with the EA. I will ensure that he receives a full written response.

[Mr Luke Charters (York Outer) (Lab)]

My constituency is home to a wonderful retirement community at Hartrigg Oaks. However, residents living there have told me that they worry, every single time there is a storm, about how the River Foss may overflow on to their property. There is a fix: a water pump to alleviate flooding, but that was removed, shamefully, by Yorkshire Water three years ago. Does my right hon. Friend agree with me that Yorkshire Water should fix that urgently, following Storm Bert?

[Steve Reed]

It is important that we look at all possible ways we can protect communities from flooding. I do not know the detail of the particular instance my hon. Friend is speaking about, but I am happy to look at it. My hon. Friend the Member for Kingston upon Hull West and Haltemprice (Emma Hardy), the Minister with responsibility for water, and I will be happy to meet him to discuss what we can do to support him in what he is calling for.

[Ian Roome (North Devon) (LD)]

I refer the House to my entry in the Register of Members’ Financial Interests. Will the Secretary of State join me in thanking firefighters from Devon and Somerset Fire and Rescue Service, who have attended over 420 water incidents during Storm Bert, including many across my constituency in North Devon? Does he agree that community resilience for severe weather incidents should be a statutory duty in England, with accompanying Government funding, as it is in the devolved nations?

[Steve Reed]

I thank the hon. Gentleman for his comments and I share his gratitude to those in the Devon and Somerset emergency services who are keeping people safe at this very difficult time. We will look, with colleagues in the Home Office, at whether further duties are required to ensure that communities are safe when circumstances like this happen.

[Claire Hughes (Bangor Aberconwy) (Lab)]

May I take this opportunity to put on record my thanks to all the agencies that worked so hard over the weekend in flood-affected areas in my constituency in really difficult circumstances, and to express my deepest condolences to the family and friends of Mr Brian Perry? As well as the police and fire and rescue services, many of the teams involved in searches of this nature are staffed by volunteers, such as Ogwen Valley mountain rescue organisation, and we owe them all a huge debt of thanks. I thank my right hon. Friend the Secretary of State for the additional support that has been offered to the Welsh Government and colleagues in Wales in response to the devastation caused by Storm Bert. What further contact will there be with the Welsh Government in the coming days?

[Steve Reed]

I echo the condolences for the loss of life and state my gratitude to those volunteers who have been engaged in supporting communities at this very difficult time. We will of course stay in regular contact with the Government and other authorities in Wales, to make sure that if they require further assistance it is made available to them as quickly as it can be provided.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

Storm Bert affected many parts of my constituency in the Scottish Borders, and I pay tribute to the volunteers and emergency services who kept local residents safe. Many farmers have been particularly badly affected. Have the Government made an assessment on crop yields, not just in Scotland but across the UK, as a direct result of Storm Bert?

[Steve Reed]

I thank the hon. Gentleman for his question. Appropriate assessments will be made once we have had time to consider exactly what has gone on, but I am sure that, like me, he will welcome the allocation of £60 million through the farm recovery fund to support farms that were devastated by flooding earlier in the year.

[Zarah Sultana (Coventry South) (Ind)]

I draw the attention of the House to my entry in the Register of Members’ Financial Interests. My thoughts are with all those affected by Storm Bert. As chair of the Fire Brigades Union parliamentary group, I express my solidarity and thanks to all our emergency services, including firefighters on the frontline.

Extreme weather events are on the rise and are becoming ever more frequent as a result of climate change, highlighting the urgent need for proper funding and resources. England is the only part of the UK without a statutory duty for flooding, leaving fire services underfunded and under-resourced to respond effectively. That must change. As the FBU has long called for, when will the Government finally provide a statutory duty for fire and rescue authorities to respond to flooding incidents in England? Furthermore, in our election manifesto the Government committed to developing a national structure to inform policy and standards in the fire and rescue service. When will that be implemented? Finally, will the FBU be invited to the floods resilience taskforce to ensure that the voice of firefighters is heard in shaping flood resilience strategies?

[Steve Reed]

I thank my hon. Friend for her question. Fire and rescue authorities have the powers to intervene, but she is quite right to point out that there is not a duty. Officials in my Department, working with the Home Office, will review that to consider whether it remains appropriate. My hon. Friend the Minister for water, who now chairs the floods resilience taskforce, is happy to issue an invitation to the FBU to participate in that.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

Residents across Somerset are once again feeling incredibly anxious. Parts of Glastonbury and Somerton saw 130 mm of rain during Storm Bert over the weekend, which has placed additional strain on our ageing flood defence network. Does the Secretary of State agree that, because of the increasing frequency and severity of extreme weather, we need to incentivise our farmers and landowners to urgently establish more nature-based flood solutions on their land and fund more extreme weather resilience plans for isolated rural communities?

[Steve Reed]

I share the hon. Lady’s concerns about the circumstances in Somerset. I agree with the points that she is making. We have increased the actions available through environmental land management schemes, including more actions around natural flood management of precisely the kind she describes. I look forward to seeing much more of that over the months and years to come.

[Mr Alex Barros-Curtis (Cardiff West) (Lab)]

I thank my right hon. Friend for his statement and for reminding the House about the first-time funding for coal tips. I notice that the Plaid Cymru Member, the hon. Member for Ynys Môn (Llinos Medi), mentioned coal tips, but she could not leave the Chamber quickly enough—she could not wait for the end of the statement.

I pay tribute to the local authorities, emergency services, volunteers and all those affected by Storm Bert in Cardiff, in Rhondda Cynon Taf and across south Wales. May I ask my right hon. Friend to speak to colleagues in the Department for Science, Innovation and Technology about looking carefully into the role of the Met Office? It is clear that its response was slow and that there was an underestimation of the impact of Storm Bert: it put out a yellow rather than an amber or red warning. Our constituents have been let down by this incompetence before. It cannot keep happening.

--- Later in debate ---

[Steve Reed]

My hon. Friend should be reassured, and so should the whole House, that in most affected parts of the country, warnings were given with adequate time for people to prepare. I encourage people to sign up on the website of the Department for Environment, Food and Rural Affairs or of the Environment Agency for warnings and alerts if they live in an area that could be affected by flooding. I am aware of the particular concern that my hon. Friend mentions about the Met Office; I will indeed be speaking to colleagues in DSIT as they review the circumstances and look at how the situation can be improved for future such events.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

I draw the Secretary of State’s attention to what happens after the acute phase of flooding, particularly in rural areas like mine. I have small areas and villages that are affected and then struggle to get things sorted out. For example, Witherley in my constituency is small enough to be affected heavily by flooding that goes up through its roads, but it then struggles to have the capacity to get all the agencies to sort it out because of the funding. When he looks at the funding model, will he consider the issue of size?

Also, trying to pull agencies together in one place has taken me more than a year. We are meeting on 13 December to plan, but it has taken 10 years of work to get them all together. Will the Secretary of State look at a way of ensuring that the process is clear, so that it is spelled out to all the agencies, including fire agencies and water companies, what they are accountable for? Everyone, and most importantly the public who are affected, needs to know who is accountable for what.

[Steve Reed]

I commend the hon. Gentleman for his work in trying to bring the agencies together in his locality, which is precisely what we are trying to do at a national level with the floods resilience taskforce. In fact, it would be helpful for the taskforce to look into how co-ordination is happening on the ground in localities such as his, especially given how long he has been pushing for this to happen in a more effective way—so far, sadly, without success. I would very much like to see the national taskforce supporting him in that work so that he can deliver for his local residents.

[Shaun Davies (Telford) (Lab)]

In places like Ironbridge Gorge in my constituency, it is days later when the water comes down the river and has an impact on businesses and residences. Each and every time the temporary flood barriers are erected, a hammer blow is dealt to the economy in this world heritage site. Will the Secretary of State instruct the Environment Agency to come up with a plan and resource for frequently flooded areas, given that year on year the flooding becomes worse in places like Ironbridge Gorge? I invite him to visit the gorge to see it for himself.

[Steve Reed]

I thank my hon. Friend for his invitation to visit the gorge; I would very much like to take him up on it when time allows. I am sure he will welcome the review of the flood funding formula, which will allow us to take different approaches to managing flooding in ways that will be much more effective. He should be aware that the Environment Agency will be conducting its funding allocation in the usual way through its relevant committees, and he should feed his views into that process.

[Ellie Chowns (North Herefordshire) (Green)]

This weekend, residents in my constituency were flooded yet again. The same thing happened only five weeks ago, and after that event I met people at my surgery who showed me footage of floodwater spewing out of their toilet into the downstairs area, and of their sodden houses. I met more than 100 residents in the village of Eardisland who expressed concerns that I know are widespread in the county and the constituency.

On that occasion in October more than 100 households in Herefordshire were flooded, yet the flood recovery framework was not initiated because Ministers felt that the flooding was not widespread or severe enough. Will the Secretary of State please consider the terms under which the flood recovery framework is initiated? It provides vital support that councils can pass on to help that recovery: immediate grants for communities and businesses, with council tax and business rates relief. Will he think about how that is triggered and consider giving the responsibility to local authorities, which are far the best-placed agencies to judge when it is required? In addition to everything we need for flood resilience, that immediate support is crucial at times like this.

[Steve Reed]

May I extend my sympathies to the hon. Lady’s constituents following the distressing experiences that they have undergone during this and, I am sure, previous flooding episodes? She is quite right to ask how we can improve the flooding formula and get agencies working better on the frontline. It is possible to do so through the consultation that we have launched on the formula, and I hope that she will contribute to that. I am sure we can get to a position where the formula works much better for her constituents in North Herefordshire and for those in every other part of the country.

[Jacob Collier (Burton and Uttoxeter) (Lab)]

I have been contacted by residents of Draycott, Marchington and Rolleston and others in my constituency who have been affected by the flooding this weekend. This is a persistent problem that affects these areas every time we experience heavy rainfall. What work is the Department undertaking with county councils and other agencies to ensure that rivers are properly maintained and drains are regularly cleared to prevent this recurring devastation?

[Steve Reed]

I empathise with the suffering that my hon. Friend’s constituents have experienced because of the recent flooding. We are reviewing the formula; we realise that it is not working as effectively as it should. Along with the floods resilience taskforce, we will be looking into how we can better improve co-ordination on the ground among the different agencies that have responsibility first for keeping people safe and then for helping communities to recover after flooding of the kind that my hon. Friend describes.

[Layla Moran (Oxford West and Abingdon) (LD)]

Residents of south Abingdon have already been flooded twice this year, and tonight there is another warning. I cannot imagine what they must be feeling. When I visited them in September, they reported feeling very alone. They had been promised a flood defence, and then the Environment Agency said that it was not value for money; they had been promised sandbanks, which then did not show up. When we asked the EA today whether it would be on the ground, it told us that it could not send enough people—not because it did not have the staff or the money, but because not enough of them had completed a workplace assessment and training on how not to be assaulted by angry residents. Of course staff safety is everything and Environment Agency workers deserve our thanks, but surely an element of common sense needs to be applied. Surely the best way to help angry residents is to be there and help them in their hour of need.

[Steve Reed]

I am grateful for the point that the hon. Lady makes. I would be happy to raise it with the chief executive of the Environment Agency to ensure that when there is an urgent need for support and staff are available to provide it, that is what happens.

[Catherine Atkinson (Derby North) (Lab)]

I thank the Secretary of State for coming to Derby last year to see our flood defences and to meet firefighters who had saved lives and property when Derbyshire was hit by floods. May I echo the calls for him to explore with the Home Office the possibility of putting the water rescue that they perform on a statutory footing? Will he give us an update on the next phase of Derby’s flood defence work?

[Steve Reed]

It was a great pleasure to visit my hon. Friend’s constituency and meet firefighters and other emergency responders so that, together with her, I could thank them personally for the work that they always carry out in circumstances like these. She has referred to the duty that may be required of the fire service and other emergency services to respond to such circumstances. Currently, there is a power but no duty. I will be engaging with colleagues in the Home Office to see whether we need to put in place such a duty. I will be sure to keep my hon. Friend updated as those conversations progress.

[Greg Smith (Mid Buckinghamshire) (Con)]

A couple of weeks ago I held a roundtable with some Mid Buckinghamshire farmers on the measures required to mitigate flooding, especially after extreme weather events such as Storm Bert this weekend. At the top of the list was the point that my hon. Friend the Member for North Dorset (Simon Hoare) made about dredging and river capacity. On top of that, however, communities in Buckinghamshire such as Calvert Green and Fleet Marston are being flooded for the first time in decades as a result of some of the big infrastructure that is being built, particularly HS2. It seems that HS2 will concrete over a field, completely unaware that that will have a knock-on effect on farmland next door. Will the Secretary of State commit to working with the Transport Secretary and, I suggest, the Deputy Prime Minister, given their plans to concrete over the countryside, to ensure that where construction takes place, there are proper—and I really mean proper—flood mitigation measures?

[Steve Reed]

The hon. Gentleman makes an important point. We need to look at dredging and other means of mitigating the risk of flooding, and he is quite right that that needs to be done across Government. We will have those conversations and will ensure that measures are taken to protect communities as much as possible from the more severe weather events that we are seeing as a result of climate change.

[Chris Curtis (Milton Keynes North) (Lab)]

As my right hon. Friend was speaking, the water levels on the River Ouse continued to rise, which means that tonight my constituents in Newport Pagnell are once again bracing themselves and preparing their homes, businesses and farms for the second flooding incident in just a few weeks. Will my right hon. Friend join me in praising the dedicated volunteers of the Newport Pagnell flood group for their tireless work in protecting our local town? Will he pay tribute to our local firefighters who are responding to this incident? Their water response unit in Newport Pagnell deals with incidents across the area. I should declare an interest: my brother is one of those brave local firefighters and is currently responding to an incident in Beaconsfield. Will my right hon. Friend also outline what steps the Government are taking to ensure that communities such as Newport Pagnell are better safeguarded against flooding in future?

[Steve Reed]

I share my hon. Friend’s praise for volunteers and the emergency services, and particularly for his brother, for the work that they are carrying out. I am sure that he will welcome our review of the funding formula, which will ensure that all appropriate steps are taken in whichever parts of the country are affected, to improve resilience against the kind of flooding that we have seen over recent days. I know that the Environment Agency is aware of the rising water levels in the Ouse and other slower-moving rivers and is taking appropriate steps to safeguard people in Newport Pagnell, in other parts of his constituency and, indeed, along the rest of those rivers who may be affected as river levels continue to rise.

[Robin Swann (South Antrim) (UUP)]

I note from the Secretary of State’s statement that the floods resilience taskforce is designed to ensure better co-ordination between central Government and frontline agencies. Can he advise whether any of those agencies, local authorities or, indeed, the devolved Administrations have requested military assistance through the MACA process? If they have, is that being considered? Will he consider including the Ministry of Defence in his floods resilience taskforce?

[Steve Reed]

Yes, the devolved Administrations were represented on the floods resilience taskforce. We want to co-ordinate better with them and to ensure that they are co-ordinating with their own agencies and the frontline staff who are charged with protecting communities from the devastating impacts of flooding.

[Mike Reader (Northampton South) (Lab)]

As the House has heard today, a major incident has been declared in Northamptonshire: there is a risk to life in my constituency and that of my constituency neighbour, the hon. Member for South Northamptonshire (Sarah Bool). Over 1,000 people have been evacuated from the Billing aquadrome, and we have seen hundreds of workers from the council, the EA, Anglian Water and the emergency services, and volunteers and residents’ groups, working around the clock to make sure that my neighbours are kept safe. Does the Secretary of State agree that the collaboration I am seeing in Northampton demonstrates the importance of the floods resilience taskforce that he has announced, which will bring together multiple agencies to protect towns such as mine?

[Steve Reed]

I had the pleasure of visiting the aquadrome, and I am very sad indeed to hear that it has been flooded yet again. My hon. Friend is right to point to the fact that it is not just about increasing funding, important though that is; it is also about getting the agencies on the ground to co-ordinate better at national, regional and very local levels.

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

We have a flood alert in Runnymede and Weybridge at the moment, but it takes a few days for the water to make its way down to us, so we do not know the full impact of Storm Bert. We hope that there will not be a repeat of what happened with Storm Henk earlier this year, when constituents were passed from pillar to post due to the myriad statutory responders during a flood emergency. What will the floods resilience taskforce do to fix that, and will the Secretary of State support my campaign for an individual point of contact and co-ordination? We need a flood control centre in Runnymede and Weybridge, and in all our constituencies, to support our residents in a flood emergency.

[Steve Reed]

The role of the floods resilience taskforce is to ensure not just that there is better co-ordination at national level and between national and local agencies, but that co-ordination happens far better at the local level in the way that he is describing and that there is much better communication with residents, so that they know who to contact, and can do so in a much simpler way, to get the support and help that they need both when floods are coming and as areas recover from the impacts of flooding.

[Lisa Smart (Hazel Grove) (LD)]

One of the ways in which my Hazel Grove constituents have been impacted by Storm Bert is as passengers facing severe delays and cancellations on our rail network, particularly the west coast main line. Will the Secretary of State please update the House on the conversations that he has had with colleagues in the Department for Transport on how to minimise the impact, and on how to ensure that we learn the right lessons, so that future flooding causes even fewer impacts?

[Steve Reed]

We are in close contact with colleagues in the Department for Transport, and safety must be the priority for both passengers and people who work as part of the crews on the trains or on the ground. The railway lines will be opened as soon as it is safe to do so. We are aware that further steps need to be taken to protect all forms of public transport and, indeed, all parts of the country from the increase in severe weather incidents.

[Ben Obese-Jecty (Huntingdon) (Con)]

The flooding Minister, the hon. Member for Kingston upon Hull West and Haltemprice, recently confirmed to me that the Government’s new floods resilience taskforce brings together a range of partners, including the Environment Agency, the devolved Administrations, selected regional Mayors and lead local flood authorities. However, following flooding in Brampton and St Ives that was caused by the high level of the River Great Ouse last month, Cambridgeshire county council informed me that its role as lead local flood authority was only a supporting one, and residents have been understandably frustrated by the lack of clarity about who owns what. Can the Secretary of State offer some clarity on which agency leads the multi-agency response during a flooding event, and how is that reflected in how it interacts with the floods resilience taskforce?

--- Later in debate ---

[Steve Reed]

I am grateful to the hon. Gentleman for raising that important point. Part of the role of the floods resilience taskforce will be to ensure that there is clarity on the ground, area by area, as to who are the lead responders and how co-ordination is happening, in a way that will provide the maximum benefit to people who are at risk of being affected by flooding.

[Steve Darling (Torbay) (LD)]

I hope that the Secretary of State will join me in thanking workers at Torbay council, who have stepped up to help out residents across my constituency during Storm Bert. I highlight to colleagues the fact that we are haunted by deep cuts to the flood defence budget under the previous Government. Will the Secretary of State reflect on a piece of critical infrastructure: our Dawlish rail line? Phase 5 of the Dawlish rail resilience programme remains up on the shelf and has not been funded yet. Will he give assurances that it will be funded, to protect this vital piece of infrastructure?

[Steve Reed]

I share the hon. Gentleman’s thanks to those who have been involved in protecting people from the impact of flooding. I can write to him on his specific question about the Dawlish railway.

[Helen Morgan (North Shropshire) (LD)]

I remind Members that I am chair of the all-party parliamentary group on flooding and flooded communities. Large areas of North Shropshire are often under water, either from river flooding or from prolonged rainfall. This weekend has been no exception, with villagers cut off for long periods of time and vast swathes of farmland flooded. This year, there are farmers who have been unable to plant crops in the current harvest, which has just been collected, and who will not be able to do so next year—they are in a desperate state. When the Secretary of State reviews the flooding formula and the funding, will he consider how farmers will be compensated for storing vast quantities of water upstream, regardless of whether they like it or not?

[Steve Reed]

We can take that into account when we look at the flooding formula, but I am sure the hon. Lady will welcome, as I do, the additional £60 million in the Budget for farmers who have been affected by the severe levels of flooding experienced earlier in the year.

[Mr Joshua Reynolds (Maidenhead) (LD)]

The advice from Great Western Railway this morning was not to travel. Following the question from my hon. Friend the Member for Hazel Grove (Lisa Smart), how many meetings has the Secretary of State had with the Transport Secretary about the resilience of Great Western Railway?

--- Later in debate ---

[Steve Reed]

It is always wise to follow the advice that is given for people’s safety. We are in regular contact with colleagues in the Department for Transport and other parts of Government to make sure that we are doing everything we can to keep people safe.

[Charlie Maynard (Witney) (LD)]

My constituency of Witney has the Windrush, the Evenlode and the Thames, all of which have really impacted constituents today. We have just lost out on some FiPL—farming in protected landscapes—funding to produce modelling of the Windrush, which is upstream of Witney, our key market town in the constituency. That means that we are unable to forecast how we can lower and slow the flood crest through Witney, which would make it safer. Will the Secretary of State please look into providing better funding or enlarging the funding for such modelling, so that we can keep towns such as Witney safe on rivers like the Windrush?

[Steve Reed]

I recognise the hon. Gentleman’s point. We will make announcements on FiPL early in the new year.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Finally, I call Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

Everybody knows that when I am called, it is all over—almost. [Laughter.] I thank the Secretary of State for bringing forward a very positive action plan and strategy. I send my sincere sympathies to those who have lost loved ones, and to those who are particularly anxious, worried and depressed about their properties. That is a serious worry for people who do not know what they will do next.

Will the Secretary of State outline what discussions have taken place with counterparts in the Northern Ireland Assembly to ensure that the Assembly and local communities have the ability to quickly regroup and get a handle on the devastating flooding that has taken place throughout the United Kingdom? I also need to ask him a question that I wish I had the answer to. One of the big questions is about alternative accommodation for those who have been flooded out. Has he been able to give any attention to that question, and if so, will the answers be shared with the people back home?

[Steve Reed]

They say it’s not over till the fat lady sings, but I am not sure that they had the hon. Gentleman in mind when that particular phrase was coined. I am in regular contact with the devolved authorities, including on flooding. They sit on the floods resilience taskforce and it is important that there is co-ordination across all parts of Government across the UK to ensure that we can provide appropriate support for people in precisely the circumstances that he describes when flooding hits.

Oral Answers to Questions

Steve Reed Excerpts

Thursday 14th November 2024 Commons Chamber

[Phil Brickell (Bolton West) (Lab)]

16. What steps his Department is taking to help prevent water pollution by utility companies.

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

I welcome the new shadow Ministers to their place—as well, of course, the returning one. Under the previous Government, water companies got away with discharging record levels of sewage into our rivers, lakes and seas, leaving them in an appalling polluted state. That is why we are taking immediate action to place the water companies under special measures, with legislation going through Parliament right now that will ban the payment of unfair bonuses to water company executives. We have also launched a commission that will lead a root and branch review of the entire sector, so that we can clean up our waterways for good.

[Manuela Perteghella]

In my constituency of Stratford-on-Avon, the River Avon and its tributaries have been heavily polluted by untreated sewage discharges. We know this because of a citizen science project, which sees residents testing for pollutants regularly along the rivers and brooks. Their efforts are supported by community initiatives such as SafeAvon and groups like Stratford Climate Action. Will the Government commit to and resource a national environmental monitoring strategy to better understand the overall health of water bodies, and will they commit to requiring water companies to monitor volumes as well as duration of storm overflows?

[Steve Reed]

The hon. Lady is quite right to be concerned about the state of the River Avon. We want to move towards a catchment-based approach to water, so we can look at all the inputs and be clear about how we can clean them up. Her point about monitoring will be considered by the commission led by Sir Jon Cunliffe. I hope that she and other colleagues will make their submissions to Sir Jon for his review, which is due to conclude in 2025.

[Phil Brickell]

I wholeheartedly welcome the Water (Special Measures) Bill as a package of reforms to end the systemic dumping of sewage into our rivers, lakes and seas by water companies, while huge sums are being paid out by the same firms to shareholders. However, laws are only ever as good as their enforcement, and effective enforcement requires adequate resourcing. Will the Secretary of State consider how the enforcement agencies might be self-funding to a degree, with money raised from fines levied on polluting water firms reinvested into the likes of the Environment Agency?

[Steve Reed]

My hon. Friend makes an important point. He will be reassured to know that precisely the points he raises will be brought into law in the Water (Special Measures) Bill, which will soon be arriving in the Chamber, so that polluters will pay for further enforcement action. That way we have a virtuous circle to help clean up our waterways.

[Dr Kieran Mullan (Bexhill and Battle) (Con)]

6. What recent discussions he has had with the National Farmers Union on the adequacy of Government support for farmers.

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[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

The independent commission on the water sector was launched on 23 October and will be chaired by Sir Jon Cunliffe. It is the biggest review of the industry since privatisation and will report next summer. It will focus on boosting investability, speeding up the delivery of water infrastructure and cleaning up our waterways.

[Ms Billington]

Southern Water is responsible for blighting beaches with raw sewage along Ramsgate, Margate and Broadstairs, yet it plans on increasing household bills by 73% over the next five years, and the chief executive officers of Southern Water have received £4 million over the last five years in bonuses and salaries. Will the new independent commission do something about this egregious situation?

[Steve Reed]

I congratulate my hon. Friend on campaigning for her local water consumers. She is right to point to the wide failings across the system. We have charged Sir Jon Cunliffe with leading a commission that will look at how we can completely reset the sector—regulation, governance and how the sector operates—so that the levels of pollution and failure under the previous Government can never be repeated.

[Rebecca Smith (South West Devon) (Con)]

In 2013, the previous Government introduced a rebate of £50 per household on the water bills of customers in the far south-west. With 3% of the country’s population paying to keep a third of our bathing beaches clean on lower-than-average salaries, will the Secretary of State please reconsider the decision to scrap that rebate for constituents such as mine, which was quietly announced just before the recess?

[Steve Reed]

It is important that support is targeted at the most vulnerable, so we will look at what more can be done through social tariffs to support families who are at risk of being unable to pay future water bills. It is right that we prioritise the poorest.

[Dr Beccy Cooper (Worthing West) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

As we have heard this morning, the public are rightly furious about the filthy, polluted state in which the previous Administration left our rivers, lakes and seas. That is why there is such strong support for the Water (Special Measures) Bill, which is working its way through Parliament. I urge all Members to make submissions to Sir Jon Cunliffe’s review, and to encourage their constituents to feed in to it. This is our chance to conduct a root-and-branch review of the entire sector to ensure that it is fit for the future and will properly serve both consumers and the environment for decades to come.

[Dr Cooper]

Research estimates that as many as 170 dolphins and other mammals are caught and killed every year off the Sussex coast, yet no bycatch data is recorded. Will the Secretary of State please outline how he is ensuring that supertrawlers operating in UK waters are fulfilling their legal duty to report marine mammal bycatch to the Marine Management Organisation?

[Steve Reed]

Vessels are, of course, already required to report marine mammal bycatch. We are looking at implementing remote electronic monitoring on larger vessels to gather better data about fishing activities. We are also working to improve our marine environment by ratifying the biodiversity beyond national jurisdiction agreement, enforcing fishing restrictions in marine protected areas, and ensuring that all catch limits are set sustainably.

[Mr Speaker]

I call the shadow Secretary of State.

[Victoria Atkins (Louth and Horncastle) (Con)]

I wish His Majesty the King a very happy birthday.

The Chancellor, the Secretary of State and the Food Minister claim that their family farm tax will affect only a quarter of farms, yet after informed questioning by the National Farmers Union, the Country Land and Business Association, the Tenant Farmers Association and Conservative Members, the Minister has now admitted that the Government need to check their figures. Should the cost of the family farm tax to farming families not have been checked before the Budget?

[Steve Reed]

The data from His Majesty’s Revenue and Customs is crystal clear: three quarters of farmers will pay nothing as a result of the changes. Family farming will continue into future generations, as it should.

[Victoria Atkins]

The Secretary of State perhaps needs to ask his Food Minister why he said at the Agricultural Industries Confederation conference that the Government are checking the figures. Let me help the Secretary of State out. He can explain the veracity and accuracy of his figures next week, when thousands of farmers come to Westminster to rally against the family farm tax, the delinking of payments, the hike in national insurance and other tax hikes on working farms in the Budget. Will he come?

[Steve Reed]

It is very important that the Government listen to farmers, and of course we will do so, but I know that farmers are reasonable people. They will want to look at the facts and, like everybody else, if they drill into the HMRC data they will see that three quarters of them will end up paying no more under the new system than they do today.

[Tom Rutland (East Worthing and Shoreham) (Lab)]

T4. Sewage spills are a scourge for my residents, and not just in the sea but in the street too. Raw sewage and used toilet roll flooded a street in Southwick recently. What are the Government’s plans to force the water companies to upgrade their infrastructure and bring an end to those foul, smelly spills that are blighting the lives of local residents?

[Steve Reed]

My hon. Friend raises an important point. He is a strong campaigner in his constituency against the failings of the water company and the high levels of pollution resulting from the failures of the previous Government, so I know that he is backing the Water (Special Measures) Bill that is working its way through Parliament, and that he will support Sir Jon Cunliffe’s commission, as we seek to reset the sector by changing its regulation and governance so that it works better for consumers and the environment.

[Wendy Chamberlain (North East Fife) (LD)]

T2. The puffins and other native seabirds in my constituency on the Isle of May were very grateful for the ban on sand eel fishing and trawling, but that ban is now subject to legal challenge. Will the Secretary of State commit to fighting that legal challenge?

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[Mr Lee Dillon (Newbury) (LD)]

T6. Last year, the River Lambourn suffered 266 sewage spills from storm overflows, causing irreversible harm to a rare chalk stream. Will the relevant Minister meet me urgently to discuss plans to address that in Newbury?

[Steve Reed]

I can certainly ensure that the relevant Minister meets the hon. Gentleman. I hope that he will also feed his views into Sir Jon Cunliffe’s review, as Sir Jon will be considering catchment-wide approaches that will better protect chalk streams.

[Tim Roca (Macclesfield) (Lab)]

Will my right hon. Friend the Secretary of State update the House on progress in creating three new national forests, and, as it is my birthday, may I extend to him an invitation to visit Macclesfield forest in my constituency?

[Rishi Sunak (Richmond and Northallerton) (Con)]

In our increasingly volatile world, I am sure the Secretary of State will agree that food security is of growing importance to our national resilience. I hope he will commit the new Government to continuing to publish the annual food security index, with the next update coming at next year’s farm to fork summit.

[Steve Reed]

It is a pleasure to take a question from the distinguished former Prime Minister. We are reviewing the data that we can publish, and we want to be as open and transparent as possible. I think that is good for the sector and good for scrutiny, but we will announce in due course precisely how it will operate.

[Mr Toby Perkins (Chesterfield) (Lab)]

I thank the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Kingston upon Hull West and Haltemprice (Emma Hardy), for coming back to me about the River Hipper scheme, which is of huge importance in my constituency. May I invite her to come to Chesterfield to meet people affected by the flood and see the Holymoorside scheme, which could make a real difference?

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[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

I congratulate the Secretary of State, and indeed the Chancellor of the Exchequer, on the achievement of the Budget: in 23 years in this House, I have never seen such a degree of unity among farming organisations in their response to it. One point on which there seems to be no disagreement is that the removal of the ringfence around agricultural payments to Scotland, Wales and Northern Ireland is a bad move. Nobody asked for it. Why did the Government do it, and what do they expect to achieve with it?

[Steve Reed]

The right hon. Gentleman will be aware that we have announced the biggest Budget for sustainable farming—£5 billion over the next two years—in the history of our country, and that is to be welcomed by everybody in the sector and everybody who cares about it. This is a Government who believe in devolution. We believe that devolved Administrations should have the right to take decisions about their own countries. The consequentials mean that the appropriate level of funding will continue to go to those devolved Administrations, and our support for devolution means that the devolved Administrations will take their own decisions about the best way to spend it.

[Andrew Cooper (Mid Cheshire) (Lab)]

Chester zoo, in the constituency of my hon. Friend the Member for Chester North and Neston (Samantha Dixon), does important and nationally leading conservation work. Zoos nationwide have faced regulatory uncertainty for nearly three years because of the previous Government’s delay in publishing new zoo standards. Will my right hon. Friend the Secretary of State set out when the Department plans to publish the updated version of the standards of modern zoo practice, to drive improvements in animal welfare and provide certainty to those institutions?

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[Rupert Lowe (Great Yarmouth) (Reform)]

This week, John McTernan, an adviser to Tony Blair, publicly stated that farming should be treated in the same way that Margaret Thatcher treated the miners, and that it was an industry the country could “do without”. As a farmer, I find this incorrect, offensive and deluded. Does the Minister agree?

[Steve Reed]

Yes.

The Solicitor General was asked—

Rural Affairs

Steve Reed Excerpts

Monday 11th November 2024 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

I beg to move,

That this House has considered rural affairs.

I am delighted that the House has this opportunity to discuss the impact of the Budget on rural communities. Let me begin by addressing what the Budget means for farming in the round. We can all agree that food security is national security, which is why we have secured the biggest budget in our country’s history for sustainable food production and nature’s recovery. It commits £5 billion to the agricultural budget over the next two years. We are continuing all the environmental land management schemes, and investing £1.8 billion into them from 2025-26, which gives farmers the stability they need and lays the foundations for sustainable food production, to protect farmers and the environment for years to come.

[Sir Desmond Swayne (New Forest West) (Con)]

What estimate has the right hon. Gentleman made of the impact on capital investment, which will be reduced as farmers consider the inheritance tax implications of those investments and adjust their plans accordingly?

[Steve Reed]

The changes have been signed off by the Office for Budget Responsibility and the full impact assessment will be available when the Finance Bill is published, before they come into force in 2026.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

Does the Secretary of State understand that a farmer coming towards the end of his career is hardly likely to invest either in improving his land or in the hundreds of thousands of pounds that a piece of agricultural plant costs these days, knowing that there will be a surcharge when, sadly, he deceases?

[Steve Reed]

The vast majority of farmers will be unaffected by the changes, so that point will not apply.

We are also rapidly releasing £60 million to support farmers whose farms have been devastated by severe flooding. That is £10 million more than the previous Government were offering and, unlike their fantasy figures, we have shown where the money to be paid out will come from. Flooding is just one of the many challenges that farmers have faced over the past year.

[Simon Hoare (North Dorset) (Con)]

rose—

[Steve Reed]

Perhaps the hon. Gentleman wants to allude to another of them.

[Simon Hoare]

The Secretary of State has painted the most rosy picture. Why does he think that no one in the farming community can see it or share it?

[Steve Reed]

I have not had time to paint much of a rosy picture yet, because I have only just started and I am taking quite a lot of interventions, but I hope I can allay the concerns of some farmers in the comments that I hope to make during my speech.

[Sir Roger Gale (Herne Bay and Sandwich) (Con)]

rose—

[Steve Reed]

I will take one more intervention and then make some progress.

[Sir Roger Gale]

The right hon. Gentleman referred to the amount of money being made available for flooding. The devastation caused by flooding pales into insignificance compared with the damage that will be done by inheritance tax. This weekend a farmer in my constituency has cancelled the building of a new barn because of it. Park home owners in my area are in despair as a result of what the Budget is doing to them. Does the right hon. Gentleman not understand that?

[Steve Reed]

The vast majority of farmers will not be affected by the changes to inheritance tax, and I implore the right hon. Gentleman not to underplay the damage caused by flooding. Many farms were absolutely devastated last year, and it will be immensely welcome that we have released £60 million to help farmers to deal with that problem, as well as setting up a flood resilience taskforce to ensure far better co-ordination between the centre and the agencies on the ground, to protect farmers from the devastation of flooding in years to come.

[Jim Shannon (Strangford) (DUP)]

rose—

[Steve Reed]

I said that I had taken my last intervention, but since it is the hon. Gentleman I am happy to give way.

[Jim Shannon]

I have been inundated with messages from farmers back home. I am a member of the Ulster Farmers’ Union, so I understand the issues clearly. The National Farmers Union here on the mainland has the same point of view. Every one of my neighbours will be impacted, and the Ulster Farmers’ Union estimates that almost every farmer in Northern Ireland will be impacted by the inheritance tax changes. Is the Secretary of State prepared to meet Ulster Farmers’ Union representatives to discuss this matter and understand much better—I say that respectfully—the issue of inheritance tax and what it means to family farms in Northern Ireland? It will destroy them.

[Steve Reed]

It is very important that we all listen to farmers and farmers’ representatives. Either I, or one of my ministerial colleagues, will make sure that we meet the representatives the hon. Gentleman mentions. I hope that I can allay some of those concerns if I am able to continue my speech, in which I will directly address the issues to which he referred.

As I was saying, flooding is just one of the many challenges that farmers have faced over the last past year. In recent weeks I have met farmers who have been hit by bluetongue in their herds, and I am sorry to say that we have the first recorded case of avian influenza this autumn. Biosecurity threats are real and their impacts even more so, which is why we are investing over £200 million to protect the nation from potential disease outbreaks, including by fixing the defences at our world-leading Weybridge facility that the Conservatives left to fall into disrepair.

[Matt Rodda (Reading Central) (Lab)]

I commend the Secretary of State’s broad approach. In my constituency there is a serious issue with precious flood plains being speculatively bought by developers, which is causing a huge amount of concern to local residents. It is also an issue in terms of the potential threat to wildlife habitats and of the impact on flooding. Will the Secretary of State consider meeting me and local residents to discuss this important matter?

[Steve Reed]

My hon. Friend is a great champion for his community. I am of course more than happy to meet him and people from his community to discuss those important issues.

The measures in the Budget will enable us to build a stronger, more sustainable future for British agriculture and put in place our new deal for farmers, which includes making the supply chain fairer so that producers are no longer forced to sell their food below the price of production; speeding up planning decisions to help farmers to diversify into new forms of income; seeking a new veterinary agreement—

[Harriet Cross (Gordon and Buchan) (Con)]

Will the Secretary of State give way?

[Steve Reed]

If the hon. Lady will forgive me, I want to make a little progress.

The new deal for farmers includes seeking a new veterinary agreement with the EU to tear down the export barriers that the previous Government erected in the first place; backing British produce by using the Government’s purchasing power to buy British; and protecting our farmers from ever again being undercut by low welfare and low standards in trade deals like the disastrous one the previous Government signed with Australia and New Zealand.

The House is aware that the Government inherited a catastrophic £22 billion black hole in the nation’s finances, meaning we have had to take tough decisions on tax, welfare and spending to protect the payslips of working people. This has required reforms to agricultural property relief. I recognise that many farmers are feeling anxious about the changes; I urge them not to believe every alarming claim or headline and I reassure them that the Government are listening to them. We are committed to ensuring the future of family farms. The vast majority of farmers will not be affected at all by the changes. Let us look at the detail.

[Ben Obese-Jecty (Huntingdon) (Con)]

Will the Secretary of State give way?

[Steve Reed]

If the hon. Gentleman will give me a little time, it is important that I make these points.

Currently, 73% of agricultural property relief claims are less than £1 million. An individual farm owner can pass on up to £1.5 million and a couple can pass on up to £3 million between them to a direct descendant, free of inheritance tax. If a couple who own a farm want to pass it on to a younger relative and one partner predeceases the other, each of them has a £1 million APR threshold that they can pass on. Add those together and that is £2 million, plus the £1 million that a couple with a property can pass on to their children. For most people, that is an effective threshold of up to £3 million to pass on without incurring inheritance tax. Any liability beyond that will be charged at only half the standard inheritance tax rate and payment can be phased over 10 years to make it more affordable. Farmers will be able to pass down their family farm to future generations, just as they always have done.

[Harriet Cross]

Will the Secretary of State tell us where he obtained those figures?

[Steve Reed]

They are from the Treasury and His Majesty’s Revenue and Customs.

Under the previous system, 40% of the value of agricultural property relief went to just 7% of claimants. That is not fair and it is not sustainable. Our reforms will put a stop to wealthy individuals buying up agricultural land to avoid inheritance tax and, in the process of doing that, pricing younger farmers out of buying land for themselves and for their families. As a Farmers Weekly correspondent pointed out,

“prices have been artificially inflated by non-agricultural buyers purchasing land for inheritance tax purposes”,

thereby making it hard for young farmers to set up a family farm. That is correct.

The reforms will protect family farms by closing the loopholes, but they will also help to provide funding for the public services on which families in rural and farming communities rely just as much as anyone else. When Opposition Members say that they would go back to the unfair old system, they also need to tell us which part of the new NHS investment they would cut to pay for it. Like everyone else, farmers and rural communities need a better NHS, affordable housing, good local schools and reliable public transport.

The last Government’s economic failure left Britain with a flatlining economy, broken public services and the worst decade for wage growth since the great depression of the 1930s. Poor public transport meant that people could not get to work, the GP or the hospital when they needed to. Home ownership was out of reach for too many in rural areas. Too few new homes were built, and even fewer that were genuinely affordable. Digital connectivity in rural areas lags behind connectivity in urban areas.

We have to kick-start the economy to build the public services that rural communities need, and to help with that we have secured the biggest budget for sustainable farming and nature in our country’s history. It will help to change farming practices so that we can clean up our rivers, lakes and seas, which the last Government left in such a filthy, polluted state.

[Ben Lake (Ceredigion Preseli) (PC)]

The Secretary of State mentioned the new set-up for the funding of agriculture and fisheries across the UK. He may be aware of the concern expressed by the Farmers’ Union of Wales, which fears that processing the extra funds through the Barnett formula—as opposed to the previous arrangement, which was a ringfenced addition for the devolved Governments—might bring about a severe reduction in agricultural funding in Wales. Will the Secretary of State please give some reassurance that that is not the case?

[Steve Reed]

As I have said, the consequentials will work in the way in which they always work. Devolved Administrations have some discretion as to how they will spend the money that is made available to them, but of course I, along with my right hon. Friend the Secretary of State for Northern Ireland, am more than happy to engage with, for instance, the Northern Ireland Department of Agriculture, Environment and Rural Affairs to discuss those points.

The huge investment we have secured in the sustainable farming budget will also help us to move to a zero-waste economy, as we end the throwaway society and reuse materials rather than sending them to landfill.

[Simon Hoare]

Will the Secretary of State give way?

[Steve Reed]

No. The hon. Gentleman has already had his chance to ask a question.

The investment will help us to boost food production as we move to models of farming that are not only more environmentally sustainable but more financially sustainable, and it will help nature to recover—here, in what has become one of the most nature-depleted countries on earth, with nearly half our bird species and a quarter of our mammal species now at risk of extinction.

Our plans to upgrade our crumbling water infrastructure will help to bring in tens of billions of pounds of private investment, and will create tens of thousands of well-paid jobs in rural communities throughout the country. We will reform the planning system to build the affordable homes that our rural communities so desperately need, while also protecting our green spaces and precious natural environments. We are investing £2.4 billion over the next two years in the flood defences that the last Government left in such an unacceptable state of decay and disrepair.

[Layla Moran (Oxford West and Abingdon) (LD)]

I am extremely grateful to the Secretary of State for giving way on the issue of flooding. Anyone would welcome more money, which is desperately needed, but will he comment on the flooding formula? Many inland communities flood, but the Environment Agency continues to say that there is nothing it can do, because the flooding formula says it is not worth doing anything. Frequent flooding of smaller communities matters, too. Is the Department looking at that?

[Steve Reed]

We are looking at that, and we will be able to make proposals in due course. I know that the hon. Lady will be interested in taking part in a conversation about them when we do.

I am talking about the changes we are making more widely for rural communities. We will open new specialist colleges and reform the apprenticeships levy to help agricultural businesses and farms to upskill their workforce, and we will recruit 8,500 more mental health professionals across the NHS, with a mental health hub in every community to tackle the scourge of mental ill health in our farming and rural communities.

[John Glen (Salisbury) (Con)]

I welcome what the right hon. Gentleman is saying about mental health, but may I take him back to what he said about the Environment Agency? There is concern about the arbitration over whether Natural England or the Environment Agency has authority. South of Salisbury, in the Avon valley, there is a massive issue. The Environment Agency has done a great deal of work, but there is always a concern that Natural England will come in and overrule it. The arbitration over who is sovereign in such circumstances is a massive issue across the country, and I would be grateful if he could turn his attention to it.

[Steve Reed]

I am grateful to the right hon. Gentleman for raising that point. I have appointed Dan Corry to lead a review of regulation across the Department for Environment, Food and Rural Affairs, precisely so that we can iron out such anomalies.

I am keen to ensure that we crack down on antisocial behaviour, fly-tipping and GPS theft through the first ever cross-Government rural crime strategy, and we will improve public transport by allowing authorities to take back control of their buses to meet the needs of their communities.

[Greg Smith (Mid Buckinghamshire) (Con)]

The Secretary of State mentions rural crime, and I do not underestimate the scale of the challenge. In the last Parliament, with Labour’s support, my private Member’s Bill got Royal Assent. It just needs a statutory instrument to be laid before the House to bring in the definition of “forensic marking”, which the police say will be a big power for them in combating rural crime. Will he talk to the Home Secretary to ensure that my Act starts to help him to deliver his rural crime strategy?

[Steve Reed]

I will convey the hon. Gentleman’s views to my right hon. Friend the Home Secretary.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Will the right hon. Gentleman give way?

[Steve Reed]

If the right hon. Lady will forgive me, I will conclude my speech, because I have taken an awful lot of time and Members will want to have their say.

Rural communities are at the heart of this Government’s No. 1 mission: to grow the economy. Everyone, regardless of where they grow up, should have the same opportunities to succeed in life. We have had to take tough decisions to fix the broken foundations of our economy, but they are part of a Budget that will restore economic stability and begin a decade of national renewal for everyone, everywhere. I welcome this opportunity to set out the facts and figures, and to show why this Budget offers a better future for our rural and farming communities, as we fix the foundations and rebuild Britain.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Secretary of State.

Independent Water Commission

Steve Reed Excerpts

Wednesday 23rd October 2024 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

With permission, Mr Speaker, I would like to update the House on the action that this Government are taking to fundamentally transform our water industry and clean up our waterways for good.

Fourteen years of Conservative failure have left our water sector in disrepair. The rivers, lakes and seas that we all love have record levels of pollution. Severe droughts are set to leave parts of the country facing significant water shortages by 2050, particularly in the south-east, and water companies forecast that England will need to find an extra 5 billion litres of water a day to fill the gap between supply and demand by that same year. A rising population and the increasing impacts of climate change are putting strain on the water system. Firmer action should have been taken by the previous Government to ensure that money was invested to fix the water and sewerage system. Instead, they allowed that money to be siphoned off for bonuses while our water infrastructure crumbled.

A secure water supply is essential for every home and business throughout the country. It is the foundation of our economy, our communities and our global security. It is essential to life itself. We use water to cool power stations, and it is vital to our electricity supply. We use water to grow the crops that provide the food on our plate, and we use it to supply our leisure industries. Without a resilient water supply, we cannot build the new homes and critical infrastructure that we need to grow the economy.

Concerns about pollution, water shortages, bill increases and the sector’s financial resilience all point to the need for profound change. The water sector needs a complete reset, with a reformed water sector working in partnership with Government to bring in the investment we need. We need a clear long-term plan to ensure that the sector puts customers and the environment first and can attract investment to upgrade our infrastructure. We need a water system fit for the future. We cannot clean up our rivers, lakes and seas overnight, but we have a plan, and the work of change has started.

On 11 July, I made a statement to the House on the agreement that I reached with water companies and Ofwat to ringfence money earmarked for investment in water infrastructure so that it can no longer be diverted for shareholder payouts and undeserved bonus payments. On 9 September, we introduced the Water (Special Measures) Bill, which sets out new measures, including measures strengthening regulation to ensure that water bosses face personal criminal liability for serious and repeated lawbreaking; giving the water regulator new powers to ban the payment of bonuses if environmental standards are not met; and boosting accountability for water executives through a new code of conduct. Today, I am pleased to announce the third stage of our plan.

Together with the Welsh Government, we are launching an independent commission that will lead the biggest review of the water industry since privatisation 35 years ago. The commission will ensure that we have the robust regulatory framework that we need to attract the significant investment that is required to clean up our waterways, build new infrastructure to address water scarcity, and restore public confidence in the sector. I am delighted that it will be led by the former deputy governor of the Bank of England, Sir Jon Cunliffe, who has decades of economic and regulatory experience. Sir Jon will be supported by an advisory group of experts covering areas such as the environment, public health, engineering, customers, investors and economics. He will seek advice from wider groups of stakeholders including environmental campaigners, consumer champions, water companies, regulators and the public at large.

The commission will conduct a root-and-branch review of the water sector’s regulatory system. It will cover the water industry in England and Wales and the strategic planning framework under the water framework directive and river basin management plans to ensure that strategic water planning across sectors is effective at catchment, regional and national scales. Where housing, planning, agriculture and drainage interlink with strategic planning across the water system, they are also in scope.

The commission will set a new framework for the future. It will not make recommendations that affect the current price review ’24 process, in order to ensure that there is a stable climate for investment as that process concludes. It will be pragmatic and will focus on reforms that improve the privatised regulatory model. Nationalisation of the water sector will not be in scope, because of the high costs of buying out the current owners, lack of evidence that it would lead to improvements, and the long delays that it would cause in the process of cleaning up polluted water and serving customers better.

The commission will make recommendations in the first half of 2025, reporting to me as Environment Secretary and to the Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs in Wales. Once it has made its recommendations, the UK and Welsh Governments will respond and consult on proposals, including subsequent legislation. Further details of the commission’s scope, delivery, approach and timelines are set out in its terms of reference, which will be available on gov.uk today.

This Government will deliver an ambitious, long-term and collaborative approach to reforming the water sector, creating a strong new partnership between Government, water companies, customers, investors and all those who work to protect our precious environment. The commission will set the groundwork for the reformed water sector that we want to see. I thank Sir Jon for leading this important work.

This is our opportunity to ensure that our children, and their children, have the chance to create memories that will last a lifetime—to splash about at the seaside, row on our rivers or enjoy a picnic on the lake shore. This is our opportunity to inject billions of pounds into the economy and to power UK growth by attracting global investment into a transformed water sector. This is our opportunity to clean up our water once and for all.

[Mr Speaker]

I call the shadow Minister.

[Robbie Moore (Keighley and Ilkley) (Con)]

I thank the Secretary of State for prior sight of his statement.

Fourteen years in opposition—and this is what the Labour party has to offer. Labour Members have had more than a decade to craft a clear package of policies, listen to campaigners and prepare to govern, yet what they have brought to the House today illustrates no sign of any ambition. This is a sign of hesitation. It is a way to delay the difficult decisions and buy themselves more time. It is part of a growing trend that unfortunately we are seeing consistently from this new Labour Government, across all Departments: announce a review, a taskforce and yet another commission, and hope the public do not notice that really they never had much of a plan at all.

That approach is simply not going to wash with the bill payers. Before the election, the Secretary of State toured the country with campaigners like Feargal Sharkey, promising radical change to the sector. He is now in power, and what has he actually achieved so far? He spent the entire election campaign telling voters that he wanted to put water company bosses in the dock, but we can see from the Government’s announcements on the Water (Special Measures) Bill that it will achieve no such thing, as campaigners and industry experts have already pointed out. Nor will the Bill provide any reassurance whatever for investors. Rather marvellously, the Secretary of State has managed not only to frustrate campaigners, but to disenfranchise investors from any long-term aspirations to invest in the sector.

The Secretary of State says that he has announced a ban on water company bonuses. Hang on: that was a policy that we brought forward in our time in government and that the Secretary of State is now attempting to reannounce and pass off as his own. It was the Conservatives who announced a ban on water company bosses’ bonuses, linked shareholder dividends to environmental performance, quadrupled water company inspections, fast-tracked investments to cut spills and launched a whistleblowing portal for water company workers to report breaches.

It is surprising to hear the Secretary of State claim that his Government are truly serious about this issue, when their proposals are less firm than the measures delivered by the previous Government. He could take real action right now by progressing the last Conservative Administration’s plans for an automatic ban on water company bosses’ bonuses when offences take place. Rehashing announcements already set in motion by the Conservative Government, putting forward policies that will not actually put more pressure on water company bosses and then simply pressing pause on a year-long review will not result in the widespread change that Labour promised its voters.

The Secretary of State acknowledges that the announced review will make no recommendations that affect the current price review ’24 process, meaning that there will be no chance of the Government considering making any significant change until 2029 at the earliest. Will he provide an outline of the timeframe associated with actual recommendations from the review being implemented and put in place? When is any real benefit from this further review, taskforce or commission likely to be experienced, not only for the water industry, in terms of infrastructure improvements, but for the bill payer and the environment? It seems to me that the Secretary of State is just kicking the can down the road with another review, another taskforce and another commission, and removing himself from any of the tough decisions.

The Secretary of State said that the review would have no impact on the price review ’24 process. Will he outline exactly when the positive impacts will come? By my calculations, it will not be until 2029 at the earliest. Will he also outline the impact of the review on the measures proposed in the Water (Special Measures) Bill? What will be done if the recommendations do not sit comfortably with the current proposals?

One cannot help concluding that the Secretary of State is out of depth on this issue, cannot deliver on the tough language that he promised in the run-up to the general election and is now doing nothing more than attempting to kick the tough decisions down the road and into the long grass. This Secretary of State seems to be all bark and no bite.

[Steve Reed]

Well, that was all a little bit embarrassing, wasn’t it? The previous Government had 14 years in power, our rivers, lakes and seas are awash with record levels of pollution, and that is all the Conservatives have to say. I took action seven days after the general election: I brought the water chief execs into my office, and we agreed that money earmarked for investment will be ringfenced so that it cannot be diverted to pay multimillion-pound bonuses to water chief execs who oversee failure in the water sector, as happened on the shadow Minister’s watch. The commission will reset the sector that the Conservatives broke, and clean up the water that they polluted. It will report to the Government in June and inform subsequent legislation.

[Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)]

At the weekend, I went swimming in the North sea —probably for the last time this year—having first checked on the Surfers Against Sewage website that there had not been any legal or illegal spills. It is disgraceful that the last Conservative Government left our seas and waterways in such as state, and it is notable that Water UK continuously blames the regulator for not allowing it to raise prices in order to invest further in our system. Will the Secretary of State make sure that we assess the value extracted by the water companies? They have taken billions of pounds in profits and hundreds of millions in bonuses. We need to make sure that future investment adds value and does not take it away.

[Steve Reed]

I thank my hon. Friend for her comments. Unfortunately, customers have been left to pay the price of 14 years of Conservative failure to secure investment in our water infrastructure, so it has collapsed to such an extent that Ofwat now recommends eye-watering bill increases. Every penny of that is down to the failure of the Conservative party. Our reset will ensure that that kind of catastrophic failure can never happen again.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I am grateful to the Secretary of State for advance sight of his statement. To a large degree, I welcome it—or at least the intention behind it—but water companies dumped 54% more sewage into our lakes, rivers and coastal areas in 2023 than in the previous year. That amounts to 464,000 spills, including many in the lakes and rivers of Westmorland. My constituency is the most beautiful part of England and also the wettest, so water is deeply personal to us.

Does the Secretary of State understand my worry that we might have gone from having a Conservative Government who would not face up to this outrage or tackle it, to having a new Labour Administration who have acknowledged this outrage and decisively resolved to have a jolly good think about it? While Thames Water crumbles as we speak and water companies seek bill increases of 40%, despite such poor performance across the country, does he really think that having a commission is necessary, given the urgent need for action? We have a fragmented, under-resourced and under-powered regulatory system, which allows powerful water companies to play regulators off against each other while our constituents pay the price. Is the solution not obvious? As the Liberal Democrats propose, we should create a new, unified and far more powerful clean water authority.

Does the Secretary of State share my deep concern that the current regulator has to give 25 years’ notice in order to strip a water company of its licence for environmental failure? Will he ensure that this ludicrous protection for failing companies should be replaced by a six-month period of notice instead? We are already more than 5% of the way through this Parliament, and this issue is one of our constituents’ most pressing concerns. Do we have to drag our heels like this?

[Steve Reed]

I thank the hon. Gentleman for his comments. He is absolutely right to point out that last year we saw the highest levels of sewage ever recorded in our rivers, lakes and seas. No wonder the public are so angry, including in his constituency. Tragically, Lake Windermere, an iconic and beautiful site, has been polluted with sewage and agricultural run-off because of the failures of the previous Government.

I have taken action already. We had a reset moment just seven days after the general election, when we carried out within a week things that the Conservatives failed to do in 14 years in power. The Water (Special Measures) Bill is going through the Houses of Parliament right now to ban the payment of unfair bonuses to water bosses. The commission, led by Sir Jon Cunliffe, will look at the entire sector—root and branch—including governance and regulation, which the hon. Gentleman points to. It will look specifically at the point that he has raised, so that we end up with a system of regulation that is fit to clean up our waterways and then to protect them for the decades to come.

[Torsten Bell (Swansea West) (Lab)]

I thank the Secretary of State for his statement and his announcement of this important review. To have Sir Jon Cunliffe, a long-term public servant, running it is very welcome indeed. Will my right hon. Friend say a bit more about how the close working between the Welsh Government and the UK Government will work, because that will be important in determining how this announcement affects my constituents?

[Steve Reed]

My hon. Friend alludes to an important point. Rivers and water catchments are no respecters of boundaries, and it is important that we have a model that works within catchments, including where they cross boundaries, as they do in some cases between England and Wales. The review has been jointly commissioned by the UK and Welsh Governments, and it will jointly report to both Governments. It will seek a better model for structuring and supporting our water sector, so that we can ensure that we clean up all our rivers, all our lakes and all our seas; so that the public can get back to enjoying them; and so that we can bring in the investment to support the infrastructure, which will be delivered at pace, to drive economic growth in every single part of the United Kingdom.

[Mr Speaker]

We come to the Chair of the Select Committee.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

The Secretary of State is quite right to point to the role of the payment of bonuses and dividends in bringing us to this point, but he must surely acknowledge that that is far from being the whole story. There are a number of business and accounting practices in companies such as Thames Water that have brought us to the stage we are at today. If he is serious about having a water system that is fit for the future, he has to understand properly what has gone on before. Will he therefore confirm that the commission will be properly resourced with the necessary forensic accounting resource, so that those who have been responsible for the most egregious practices in the past and who now seem to be appearing in other water companies around the country will not be allowed to do the same thing there?

[Steve Reed]

I thank the Chair of the Select Committee for the points that he makes. Of course, he is right. The Water (Special Measures) Bill, with its ban on bonuses, will not be sufficient to reset the sector, although it is an ask that the public are rightly making because of the unfairness of people who are overseeing failure being richly rewarded for that failure. That should not have been allowed to go on under the previous Government, and it will not go on under this new Government.

The reason we have set up the commission is to address the very points the right hon. Gentleman makes about financial and environmental sustainability and viability. I look forward to working with him and his Committee as the commission carries out its work, as we review its findings in the summer of next year, and as we then shape what will be significant new legislation to reset the sector—a reformed sector—in a new partnership with Government to bring in the investment that will finally clean up our waterways.

[Helena Dollimore (Hastings and Rye) (Lab/Co-op)]

I declare an interest as a customer of Southern Water who lost my water supply for five days earlier this year, as did 30,000 of my constituents. As the Secretary of State knows well from his visits to Hastings and to Rye, we have major issues from flooding to sewage to water outages. I welcome the water commission. How can my constituents, particularly volunteer groups such as the Clean Water Action group, have their voices heard, particularly their concerns about ensuring that the regulators have the power and resources to clean up our sea?

[Steve Reed]

My hon. Friend is a powerful campaigner for cleaner water. In fact, it is hard to think of anybody who has campaigned harder on the issue. The commission will seek to engage the public at large, as well as a wider group of stakeholders who will be represented on an advisory group, which will include a customer voice. Once the commission has reported, the Government will consult on those findings and that will inform the subsequent legislation that will reset this sector once and for all.

[Mr Speaker]

Order. I say gently to the Secretary of State that I am here and he should be speaking through the Chair, not to the Member, as he has done for the last two questions. We can work together to get everybody looking the right way. I call Sir Gavin Williamson to set a good example.

[Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)]

In my constituency we have beautiful rivers, including the great and mighty River Trent and the River Penk. Over the last few years, as more transparent data has become available, we have been able to see the number of sewage discharges going into those rivers. Will the Secretary of State promise the House that looking at how we can reduce sewage discharges into the Trent and the Penk will be at the heart of what the commission does?

[Steve Reed]

It is always a pleasure, of course, to gaze at you, Mr Speaker, rather than elsewhere in the Chamber.

The right hon. Gentleman makes an important point. The point of the commission is to identify ways in which we can strengthen regulation and operations so that we can bring in the investment, clean up our water sector once and for all, and reduce and remove the pollution that is destroying so many beautiful rivers, including those in his constituency.

[Tonia Antoniazzi (Gower) (Lab)]

I congratulate the Secretary of State on the commission that has been set up today—it is absolutely fantastic. Gower was the first area of outstanding natural beauty in the whole of the United Kingdom, and the bathing waters there are second to none, but some of them are less so. I would like to highlight a campaign I have set up to test the bathing water in the winter season, with my constituents, local business and the Gower Society, because data is key—it is what will drive the improvement of our bathing water. Will he congratulate Surfers Against Sewage, which has been really supportive, and everybody in my constituency who is taking part and taking control?

[Steve Reed]

My hon. Friend represents an incredibly beautiful part of the country in the Gower, and her constituents and the many people who visit those beauty spots will want to know that their children can enjoy the water without risk of contamination from polluted water. Of course I congratulate Surfers Against Sewage and the many campaigners who have pushed for reform. They will be invited to participate in the work of the commission—they have huge expertise. I hope that, before long, her constituents who are testing the quality of the water will start to see improvements until it is pure and crystal clear, as it should always have been.

[Adrian Ramsay (Waveney Valley) (Green)]

The Secretary of State highlights the scandal of sewage in our seas and rivers. Indeed, raw sewage was dumped into our rivers and seas for 3.6 million hours last year. Since privatisation, £72 billion has been paid to shareholders in dividends, while his Department highlights that it would cost £56 billion to carry out the necessary investment, so privatisation has failed as a model for getting the investments in place. Will he therefore confirm that the commission will look at what ownership model for water will be effective in addressing this scandal, including the option of bringing water back into public hands?

[Steve Reed]

The reason I have ruled out nationalisation is that it would not resolve the problems we face. We saw in the Olympics in France that the River Seine was not able to be used for swimming because of pollution. That is a state-owned water system. We see the problems in Scotland. That is a state-owned water system as well. The problems are those of governance and regulation. Nationalisation would cost towards £100 billion of public money—money that does not exist—and the time it would take to unpick the current models of ownership, during which time investment would be choked off, would see our rivers, lakes and seas filled with even more sewage and pollution, rather than less. I am more interested in the purity of our water than the purity of our ideology. I will do what works best as quickly as possible. The commission will give us guidance on how we should change the system to make sure it works for everybody.

[Neil Duncan-Jordan (Poole) (Lab)]

For the last few weeks, I have been conducting independent tests, with colleagues from Bournemouth University, for nitrates and bacteria in the lovely Poole harbour and the surrounding waters. I have noticed, from talking to colleagues, that the frequency of official testing and the number of sites at which those tests are carried out have been reduced significantly by the Environment Agency over the years. Will the commission look at those issues? Will testing and the frequency of testing be included in its work?

[Steve Reed]

I recognise what my hon. Friend says about Poole harbour. It is, indeed, an incredibly beautiful part of the country. I have visited it several times and, sadly, I have also seen the extent and impact of the pollution. We are making sure that all sewage outlets are monitored through compulsory means, which is not the case currently. The commission will look at how we can improve the testing and monitoring of water quality as part of the strengthening of regulation, which will form a key part of its work.

[Charlie Dewhirst (Bridlington and The Wolds) (Con)]

The Secretary of State mentioned the importance of drainage in reducing incidents of pollution caused by flooding. Will he therefore commit today, while we await the outcome of the commission, to distributing the £75 million allocated by the previous Government to internal drainage boards, so that farmers in my constituency and others in the River Hull catchment do not have to spend another winter under water?

[Steve Reed]

Unfortunately, the hon. Gentleman is referring to commitments to spend money that did not exist. We are waiting for the Chancellor to announce her Budget from this Dispatch Box in almost exactly one week’s time, and we will find out much more then.

[Jessica Toale (Bournemouth West) (Lab)]

Last year, sewage was dumped 57 times along the precious coastline of my constituency—the equivalent of 594 hours of sewage spillages. Our constituents are rightly disgusted by this state of affairs. The Conservatives covered up this scandal for 14 years. Will my right hon. Friend tell me what this new Labour Government will do to hold companies to account?

[Steve Reed]

I thank my hon. Friend for her question. I had the pleasure of visiting Bournemouth West with her, and I saw for myself the impact on businesses and tourism in that part of the world. Parents are frightened to let their kids go in the sea at certain times of day, when the water contamination has reached unacceptable levels. The commission will look at how we can strengthen regulation and governance to ensure that the practices that water companies have got away with over recent years can no longer happen. It will also look at how we can bring in the investment needed to repair our broken water infrastructure, so that we can drive economic growth in every part of the country, including, of course, in Bournemouth West.

[Lee Anderson (Ashfield) (Reform)]

The use of storm overflows in places such as Skegby in Ashfield is absolutely disgusting and it pollutes my rivers, so will the Secretary of State commit to giving the water companies a deadline for ending their use?

[Steve Reed]

It will be for the commission to look at what we need to do to improve infrastructure and fix the broken system that we have at the moment. We are making sure that every overflow has monitoring on it, so that we know exactly what is coming out of it. We can therefore take action against the water companies that might be responsible.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

In my constituency this week, as well as having sewage in our bathing waters, we have had sewage on the streets in Penryn. The Conservative party cut funding to the regulator in 2015. Will the Secretary of State please confirm that the review will completely reset the role of the regulator?

[Steve Reed]

I thank my hon. Friend for her question. I had the pleasure of visiting Truro and Falmouth during the election, and I saw for myself the problems there. It is disgusting to see sewage bubbling up into the streets and even into some people’s back gardens because the sewage infrastructure is so broken after the previous Government failed for 14 years to bring in the investment necessary to upgrade it. The commission will look at how we secure funding and get that infrastructure rebuilt at pace, so that we can improve the situation we are hearing about. It will also look at regulation and the role of the regulator and make proposals as to how we can improve those, so that we have regulation that is fit for purpose.

[Caroline Voaden (South Devon) (LD)]

In Kingsbridge, in my constituency, the residents are literally wading through sewage, which seeps out of the drains in heavy rain due to a mixture of increased sewage from new houses and ancient culverts that cannot cope. I do not think that those residents will be encouraged by a review and a commission, which will not solve the problems they will face this winter. Will the Minister therefore meet me to discuss the particularly difficult and chronic problem in Kingsbridge? We need to find a solution, because we have not had one for a long time and we desperately need to sort this out.

[Steve Reed]

I have, of course, already taken action myself. I had the water chief executives into my office just seven days after the general election, and we agreed a programme of initial reforms, including ringfencing customers’ money that is earmarked for investment, so that it cannot be diverted and spent on undeserved multimillion-pound bonuses or dividend payments. We also have the Water (Special Measures) Bill going through the House of Lords right now, which will ban the payment of those undeserved bonuses. It is important that we understand exactly what has gone wrong in the sector that has led to a situation where regulation does not meet the requirements of the public, businesses, the economy or the environment. Key proposals will be coming out of the commission on those issues, and I hope the hon. Lady will welcome them when they come forward.

[Alice Macdonald (Norwich North) (Lab/Co-op)]

Today, a report found that rivers in the east and in London have the worst water quality in the UK, with an alarming amount of chemicals found. Citizen science has played a key role up to now in monitoring the quality of our water, so will the Secretary of State join me in paying tribute to citizen scientists and volunteers and assure us that their voices will be heard in this important work?

[Steve Reed]

My hon. Friend makes an important point. The many campaign groups and citizen scientists have had a huge impact on raising the profile of the sewage scandal affecting our country and in pointing to some of the ways in which we can start to fix things. Sir Jon’s commission will have an advisory group with representation from campaign groups and consumers. There will also be wide engagement with the public, both through the work of the commission itself and subsequently, as we work towards the reform legislation that will reset the sector once and for all.

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

In the absence of a plan, it is always a good idea to do a review. My constituents are being failed by our local sewage infrastructure—Thames Water is a total and utter disgrace. However, I really welcome the Secretary of State’s statement, because I think I have found an unlikely ally. The Labour Government will force through building on the green belt in my constituency, with a whole host of new houses—a situation exacerbated by the failure of the Liberal Democrat administration in Elmbridge to deliver a local plan. Given the time it will take the commission to report back, and given that these new houses will require more sewerage, does the Secretary of State agree that we should pause and think again about the house building targets until the review has been completed?

[Steve Reed]

I thought the hon. Gentleman was standing up to apologise for the fact that the Conservative Government did absolutely nothing for 14 years, other than watch the torrent of effluent going into our rivers, lakes and seas increase and pollute them. My hon. Friend the Water Minister would be more than happy to meet him to discuss the issues that he raises in his constituency.

[Ms Polly Billington (East Thanet) (Lab)]

I welcome the commission announced by my right hon. Friend. Last week, six beaches in my constituency were affected by raw sewage dumping, with two of them—Joss Bay and Stone Bay—experiencing a bad effect on their bathing water quality, but the verdict was that they were still within Environment Agency permitted limits. Will my right hon. Friend confirm that the commission will investigate regulatory standards, so that when raw sewage is dumped, there is actually a fine and a punishment for the water companies? I must also make a declaration as a customer of Southern Water and a sea water swimmer.

[Steve Reed]

I thank my hon. Friend for her question. She is, of course, a well-known environmental campaigner who stands up for her constituents and for the many businesses, including tourism businesses, that are adversely affected by the appalling state of our waters. It is clear that regulation and governance have been inadequate for a long time. This is a reset moment, where we can finally strengthen those things and deliver the clean water that her constituents, mine and those of all Members across the House expect to see.

[Ann Davies (Caerfyrddin) (PC)]

Diolch, Mr Llefarydd. Water is devolved, but we in Wales do not have the full range of powers needed to address this scandal. For example, the Senedd cannot regulate the transfer of water by private companies whose catchment area straddles the border, which of course includes the likes of Hafren Dyfrdwy. Will the Secretary of State ensure that the commission considers the full devolution of powers over water and sewage licensing to Wales to empower the Senedd to set higher targets?

[Steve Reed]

Diolch yn fawr. The commission is jointly set up by the UK Government and the Welsh Government, and it will report back to both. It will inform the actions that both Governments take subsequently, including looking at infrastructure and how we make catchment areas operate better, particularly when they cross borders, as so many do between England and Wales.

[Abtisam Mohamed (Sheffield Central) (Lab)]

I congratulate the Secretary of State on the launch of the independent water commission. I know my constituents in Sheffield Central will welcome the review. They are seeing a 25% rise in their bills, but that does not make sense to them when shareholders continue to receive profits. Will the Secretary of State provide an assurance that as an outcome of the review there will be transparency, water companies will be held to account and we will reset the focus on consumers instead of company profit?

[Steve Reed]

My hon. Friend makes an important point. Consumers must have a strong voice on the commission. They will gain that through consumer representation on the advisory group that will be working with Sir Jon, as the commissioner. She points to the eye-watering level of bill increases already proposed by Ofwat; alas, they are the price of Tory failure. The Tories allowed the water infrastructure to collapse to such an extent that it costs much more to fix it now than it would have cost had it been maintained properly through those 14 years. I cannot undo the damage they caused, but I can draw a line in the sand to ensure it never happens again.

[Andrew George (St Ives) (LD)]

When the Conservatives privatised water, they created risk-free, money-printing emporiums that could pollute our coasts, including my west Cornwall coast, at their convenience. Although the Secretary of State says that nationalisation is not in scope —one can understand why—to what extent will company governance be in scope? Will it be possible to move companies closer to becoming community benefit societies, or at least to installing a community environmental champion, not in the pay of the company, on every board, to keep watch on the company?

[Steve Reed]

The hon. Gentleman makes important points. The areas he refers to will be in scope for the commission. I hope he will make his own representations to ensure those points are heard and fully considered before we get the findings in the summer of next year.

[Alistair Strathern (Hitchin) (Lab)]

Residents in my constituency have been disgusted by the degradation of our rural waterways across the east of England, as well as by the hollowing out of reservoir capacity across the country. I welcome the new Government and the new Secretary of State’s renewed leadership on these issues, but it is clear that under the previous Government weakened regulation and regulators played their part in facilitating the mess we have inherited. What assurances can he give my constituents that we will be beefing up the regulators and giving them the power they need to take the action we all want to see?

[Steve Reed]

My hon. Friend is absolutely right that the previous Government deliberately weakened the regulators. They kept regulation too weak to hold the water companies to account and to ensure that we got the investment which could have maintained a better standard of infrastructure and stopped the level of pollution that his and everyone else’s constituents have had to face. We have already taken steps through the Water (Special Measures) Bill to give the regulator more teeth. The commission will be looking root and branch at the role of regulation, governance and the regulator, to ensure we have a system that is fit for the future that will guarantee clean water for decades to come.

[Ellie Chowns (North Herefordshire) (Green)]

If I heard correctly, at the start of his statement the Secretary of State referred to the River Lugg, which runs through the centre of my constituency. Its catchment has been subject to a planning moratorium for more than five years, because of excess levels of phosphates in the river. The Secretary of State will be well aware that the reason for that is not primarily sewage pollution, but agricultural run-off; more than two thirds of the pollution is from agricultural run-off and only a quarter from sewage. However, the terms of reference for the Government’s water commission essentially make no mention of agriculture, with only a passing reference and nothing specific about addressing that problem; likewise the Water (Special Measures) Bill. With such a narrow approach to addressing water pollution, the Secretary of State will not be able to achieve his aim of cleaning up our rivers and seas. Does he agree that the terms of reference need to be changed to incorporate full attention on agricultural pollution as well as sewage?

[Steve Reed]

I hope the hon. Lady will look at the terms of reference, which are available at gov.uk. They focus on the whole catchment area of rivers and include agricultural run-off, which accounts for 45% of water pollution. Where there is an interface between agriculture and polluted water, that is indeed in scope for the work of the commission.

[Noah Law (St Austell and Newquay) (Lab)]

I thank the Minister for his statement. The contamination and destruction of our waterways, and even of our high streets, as we saw with sewage pollution in Newquay the other week, is an absolute disgrace that the previous Government failed to address. With Pennon Group, the owner of South West Water, paying £112 million in dividends and over £160 million in other finance costs, will the Secretary of State ensure that the independent commission, which I greatly welcome, addresses whether we have effective funding models for our water industry?

[Steve Reed]

My hon. Friend is absolutely right; it is disgusting for people to see sewage bubbling up, and not just in their high streets but even in their gardens, because of broken water infrastructure. We will be looking for a reset so that we can have a water sector that works for customers and the environment, as well as investors.

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

The year 2 pupils of Bishop Tufnell school in my constituency told me how disappointed they were not to be able to swim in the sea on their summer day out last year. As a fellow sea swimmer, I share their disappointment. Winter is coming and there is no time to waste. Pushing the can down the track with this commission is not good enough. Having reviewed the activities in my constituency, I want to know how the Secretary of State will provide a strategic overview that brings together all the different agencies that impact this matter, and not some time next year but before the real issues hit every single constituency around the coast of the country right now?

[Steve Reed]

I am very sorry for the year 2 pupils at the school the hon. Lady mentioned. I respectfully remind her that she represents the party that sat back and did nothing for 14 years, while the levels of pollution in our rivers, lakes and seas got far worse. That, I venture to suggest, is why those year 2 pupils cannot go in the water.

[Perran Moon (Camborne and Redruth) (Lab)]

Sewage polluting Cornish beaches such as those in my constituency—specifically, St Agnes, where Surfers Against Sewage has its head office, Perranporth and Portreath—is yet another Conservative scandal that has damaged our economy and society for years, and that a Labour Government will now have to clear up. Does the Minister agree that as well as the economic damage, the damage to the mental health of those of us who cannot regularly use the sea should not be underestimated? Will the commission consider the mental health benefits as part of its work?

[Steve Reed]

I had the pleasure of visiting my hon. Friend’s constituency with him during the summer. I saw for myself the impact of sewage in the sea on the beautiful beaches around his part of Cornwall. Of course, it is not unusual for a Labour Government to have to come in and clean up the Tories’ mess, but rarely quite so literally as in the case of sewage in our waterways. He makes an important point about mental health. I hope he will feed that back to the commission because it is important it hears all sorts of views about the impact of polluted water as it considers how we can best clean it up.

[David Reed (Exmouth and Exeter East) (Con)]

Since I was elected in July, Exmouth and Exeter East has been hit by significant sewage issues. I am sure the Secretary of State will understand that and I have written to him recently outlining some of those issues. Although the commission may bear fruit in future years, there are areas of the country, such as my constituency, that need immediate fixes. Will the Secretary of State meet me and the chief executive of South West Water to ensure that immediate fixes are put in place and maximum pressure is applied, so that we have the fixes we need and do not have to endure another summer like the one we have just had?

[Steve Reed]

I welcome the hon. Gentleman to his place and to this House. I hope Conservative Members will engage constructively with the commission, so that he can feed in his views directly. My hon. Friend the Minister for Water and Flooding is happy to meet him to discuss his local issues.

[Josh Fenton-Glynn (Calder Valley) (Lab)]

My constituents do not think that Yorkshire Water is doing a good job. Last year, sewage was discharged into the River Calder 4,125 times. The same year, Nichola Shaw, the boss, chose to take home a bonus of £371,000—or £90 per discharge. We have also had three major flooding incidents in Calder Valley over the past 15 years. Regulations do not cover water companies acting against flooding. Will my right hon. Friend look at the breadth of the current regulations and at what water companies can do about flooding?

[Steve Reed]

My hon. Friend makes an important point. The Water (Special Measures) Bill, which is currently going through the House of Lords and will soon be in this House, looks at how undeserved bonuses can be banned. The public quite rightly feel a sense of injustice that failure is being rewarded, when clearly it should not be. The points he makes about flooding are well made, and I hope he will feed those into the work of the commission as it starts its work.

[Richard Foord (Honiton and Sidmouth) (LD)]

The Environment Agency used to be responsible for monitoring sewage discharges, but for more than a decade now the water companies have had the responsibility for monitoring releases via storm overflows. In the previous Parliament, the Environmental Audit Committee heard that illegal spills may have been 10 times greater than that declared by the water companies. Will the new commission consider removing from water companies the monitoring of sewage discharges, or will it let them mark their own homework, as the previous Government did?

[Steve Reed]

There has been a wide failure in the regulation of water. That is why I have asked Sir Jon Cunliffe, as part of the commission that he is leading, to look at regulation and the roles of the regulators—not just one of them—to ensure that we have a system that is fit for purpose. We are ensuring that, outside the commission, there is mandatory monitoring of what is coming out of all overflows, including emergency overflows. In the Water (Special Measures) Bill, water chief executives will be required to be open and transparent about the extent of pollution; otherwise, they will face personal criminal liability for the first time.

[Mr Jonathan Brash (Hartlepool) (Lab)]

In 2024 alone, Hartlepool’s beautiful coastline has been marred by 49 separate incidents of sewage being discharged into our sea. At the same time, the water companies are making billions in profit. Whatever the outcome of the commission, can the Secretary of State commit to putting people in Hartlepool and across the country ahead of profit in cleaning up this mess?

[Steve Reed]

My hon. Friend is absolutely right; this sewage scandal affects the entire country, including his constituency of Hartlepool. It is important that this commission focuses on ensuring that consumers and the environment come first, and that we have a water sector that serves their interests primarily. I hope that he will make his points directly to the commission, because they will value hearing from him.

[Mike Martin (Tunbridge Wells) (LD)]

I was a brand-new parent when South East Water cut off the water for six days for me and for thousands of my constituents. South East Water is 74% in debt—it is the second most indebted company in the land. Its current investment plans rely on taking on more debt, which is then paid for through increased customer bills. Clearly, that is unsustainable not just for the companies, but for the customers because of their ever-rising bills. Will the Secretary of State assure me that this commission will make suggestions for reducing the indebtedness of water companies?

[Steve Reed]

That is an important point. The commission will be looking at the financial viability of water companies, including their levels of indebtedness. The hon. Member also made the important point about what happens when water companies cut off supplies, because, frankly, compensation to individual households and businesses has been inadequate. That is something that we seek to address through the Water (Special Measures) Bill, which is going through Parliament right now, so it need not wait for the commission.

[Dr Allison Gardner (Stoke-on-Trent South) (Lab)]

The village of Upper Tean, which the Secretary of State may remember, has experienced flooding, burst drains, and sewage flooding into rivers and streams, killing them, for many years. And recently residents had to turn out en masse in the middle of the night to divert traffic away when the village was overwhelmed by quite a serious and urgent flood. Following meetings with the Environment Agency, the parish council is looking into developing a flood action group, so that it can provide the resilience and the powerful voice to take action against water companies such as Severn Trent. Will the Secretary of State assure me that the commission will look at how communities such as that of Upper Tean can build the resilience they need and also help them develop a flood action group?

--- Later in debate ---

[Steve Reed]

I remember very well and with pleasure the visit to which my hon. Friend refers. I also remember how distressed residents were to see their homes flooded and their possessions destroyed. Very often their homes were uninsurable, because of where they were located. The commission will consider all those factors. My hon. Friend the Water and Flooding Minister and I are also looking at what can be done separately to tackle the scourge of flooding to better protect communities now and into the future.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I will try to get in as many people as I can, so can we please keep the questions and answers as snappy as possible?

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

The statement from the Secretary of State is welcome, but passionate campaigners in my constituency will be concerned that, when we already know the dire state of our rivers and water courses, a review will potentially push the can down the road and delay the changes that we so desperately need. Will the commission set a deadline by which water companies have to prevent all sewage discharges in sensitive sites, including chalk streams such as the Lavant and Ems in my constituency?

[Steve Reed]

We certainly know the dire state of our waterways. We also need to know in detail the root and branch reforms required to make the corrections. We will have that from this commission by next summer, and I hope the hon. Lady will take part in that. We need to clean up all of our waterways, including those very important ones to which she refers.

[Rachel Taylor (North Warwickshire and Bedworth) (Lab)]

This weekend, I met the Fillongley flood action group, a small group of brave men and women who, when they receive notifications about floods, put on their waders in the middle of the night and go out and clear a culvert that is not fit for purpose. Will the Secretary of State join me in applauding their efforts? Will he also reassure them that this commission will look across all Departments to see how we can best ensure that those culverts can accommodate the overflow from things such as smart motorways, as I am hearing that the floods have got worse since the M6 was allowed to become a smart motorway. Will it also consider the economic impact on those villages when shops, hairdressers and the local pubs close, sometimes on a permanent basis?

[Steve Reed]

I thank the residents of my hon. Friend’s constituency and those in other constituencies who are taking action for themselves against flooding. We have already set up and held the first meeting of the flood resilience taskforce, which will be seeking to provide better co-ordination between central Government—where the resources are held—and those local agencies on the ground charged with improving work to protect people from the very damaging effects of serious flooding.

[Mr Joshua Reynolds (Maidenhead) (LD)]

Last year, water company bosses in England and Wales were paid £9.1 million in bonuses. That is while Thames Water proposes a 59% increase in customer bills by 2030. Does the Secretary of State therefore understand why many residents in our constituencies have lost faith in the regulator’s ability to control these powerful firms and will he commit to replacing the regulator with one that has some teeth?

[Steve Reed]

I certainly agree that residents have lost confidence not just in the regulators but in the water system at large, which is why we have set up this commission to look at how we can get regulation that is fit for purpose for the future.

[Catherine Fookes (Monmouthshire) (Lab)]

Diolch, Secretary of State. Monmouthshire must be one of the only constituencies in the UK that did not get a visit from the Secretary of State, but we did get a visit from Feargal Sharkey, which was great. I really welcome the announcement today, especially this new partnership between the Welsh and UK Governments, which, unfortunately, the Conservative Government completely failed to achieve. For example, they brought out the River Wye action plan, which failed to include Wales and had no new money. May I ask the Secretary of State to relook at that action plan, commit to a new one that uses the River Wye catchment partnership groups, the Friends of the River Wye, and all the different civil servants from both sides of the border. Let us then use that group and help clear up the River Wye.

[Steve Reed]

Diolch yn fawr i chi. I would be very happy to visit Monmouthshire. It is important that we look at the situation with water across catchments, particularly where it is crossing borders between England and Wales. The fact that this commission is jointly commissioned by both Governments and will report to both Governments will ensure that is what happens.

[Steff Aquarone (North Norfolk) (LD)]

I am pleased to see action coming forward from the Government on this, but we know that they need to go further and faster on this issue. In North Norfolk, much of the infrastructure dates from the 1970s and 1980s. Then, a just-about-managing approach was taken to construction and clearly it is no longer managing the situation. Can the Minister confirm that this commission will look specifically at directing investment from water companies to infrastructure upgrades as and where they are needed?

[Steve Reed]

We certainly need fast action after 14 years of absolutely nothing. The commission will point the way to resetting the sector for the future, and will seek to establish a system that will do exactly what the hon. Gentleman talks about.

[Danny Beales (Uxbridge and South Ruislip) (Lab)]

Hundreds of residents in Ruislip Gardens and Ruislip Manor in my constituency have been flooded in recent weeks. I have met many of them who have had to move out of their homes. They are frustrated by poor regulation and buck-passing between the water authority and the local council, the flood management authority. This welcome review, after 14 years of dither and delay, is good news for my residents, but will my right hon. Friend assure me and my residents that it will look specifically at the adequacy of governance and accountability mechanisms between flood management authorities and water management organisations, and will he meet with me and my constituents to discuss these issues?

--- Later in debate ---

[Steve Reed]

I have had the pleasure of visiting my hon. Friend’s constituency many times over the past year, and I know what a concern flooding is to people living there. We have already set up a flood resilience taskforce, which will ensure better co-ordination between the centre, where resources are held, and agencies on the frontline, including those to which he refers, to ensure that people are better protected from the impact of flooding. I am sure that my hon. Friend the Water Minister will be happy to meet with him to talk about local flooding.

[Several hon. Members rose—]

[Jim Shannon (Strangford) (DUP)]

Short and sharp—my goodness, what a challenge.

It is great news that accountability will, at last, be at heart of this review. Northern Ireland is in a similar situation regarding water, though it is a slightly different scenario, with a Government-owned operator. Will the Secretary of State indicate how the review can help to deliver a UK-wide water service that is truly fit for purpose?

[Steve Reed]

It is always a pleasure to hear from the hon. Gentleman. Of course water is devolved in Northern Ireland. It will be for the local authorities there to make their own decisions about how to correct problems in beauty spots such as Lough Neagh.

[Dave Robertson (Lichfield) (Lab)]

My constituency is made up of 21 local government wards. One of them, Bagots and Needwood, was subjected to 3,000 hours of sewage spills in just one year. Can the Secretary of State assure me that, after 14 years of failure from the Conservative party, the commission will leave nowhere to hide for criminal water bosses?

[Steve Reed]

That is absolutely the intention.

[Phil Brickell (Bolton West) (Lab)]

As a whitewater kayaker, I spend countless hours on rivers and streams up and down the country, so I know that both the Environment Agency and Ofwat need to be properly resourced if we are to clear up the toxic legacy left in our waterways by the last Government. Can the Secretary of State reassure my constituents that the newly announced independent water commission will look at resourcing to ensure that the water firms responsible for polluting our waterways are held to account?

[Steve Reed]

The commission will look at identifying a model of appropriate and effective regulation for precisely the reasons my hon. Friend outlines.

[Louise Jones (North East Derbyshire) (Lab)]

My constituents in North East Derbyshire are rightly disgusted that water bosses received over £41 million in bonuses and other incentives under the previous Conservative Government. Can the Secretary of State assure me that every penny of my constituents’ hard-earned money will be spent where it is needed?

--- Later in debate ---

[Steve Reed]

We have already announced plans to ringfence money earmarked for investment so that it cannot be diverted for undeserved multimillion-pound bonuses, as happened so frequently under the previous failed Conservative Government.

[Chris Hinchliff (North East Hertfordshire) (Lab)]

The chalk streams in North East Hertfordshire and across England are of international significance, but too often these waterways are not just polluted, but running dry. Will the Secretary of State assure me that the commission will look at the regulation needed to bring an end to not only sewage spills, but the over-abstraction of aquifers and chalk streams?

[Steve Reed]

The commission has a wide remit, and will look at the wider impact of damage to the water system, which got much worse under the previous Government.

[Amanda Martin (Portsmouth North) (Lab)]

As a coastal city, we welcome the commission. It is vital to sort out sewage and floods. In my constituency, parts of Drayton and Farlington are affected by floods—not from rivers or the sea, but because water pumps up through the drains. While it is not sewage, the water cascades down the streets into houses and shops, forcing holidaymakers to check whether they need to get people to put sandbags out to protect their property. Will the Secretary of State ensure that those types of floods are included in the remit of the commission, and that water companies take responsibility?

[Steve Reed]

We have also set up a flood resilience taskforce, which is looking precisely at those kinds of problems related to flooding so that we can take action immediately.

[Mr Luke Charters (York Outer) (Lab)]

Toothless water regulators have been left up the creek. Can the Secretary of State confirm that Sir Jon Cunliffe will look at scrapping and replacing Ofwat?

[Steve Reed]

It will be for the commission to look at how we get to an effective and appropriate model of regulation, including the roles of the regulators.

[Connor Naismith (Crewe and Nantwich) (Lab)]

The River Weaver, which runs through the town of Nantwich in my constituency, suffered from a spate of devastating pollution last year, killing hundreds of fish and blighting our beautiful market town. It is believed that the cause of the pollution was slurry dumping from intense agriculture. Can the Secretary of State confirm that the engagement and support that farmers need to dispose of slurry mix in the appropriate way will form part of the review?

[Steve Reed]

Yes, the impact of run-off from agriculture will be in the scope of the commission’s work.

[John Slinger (Rugby) (Lab)]

Does my right hon. Friend agree that, had the Conservative party put as much energy into protecting our rivers, lakes and seas as it has into filling its reservoirs of chutzpah, my constituents in Rugby would not be living with the consequences of ineffective regulation, undue profits and unearned bonuses, and that, as in so many areas, the Labour party is clearing up the mess that we inherited?

[Steve Reed]

The short answer to that is yes.

Cambridge Waste Water Treatment Plant Relocation: Development Consent Order Extension

Steve Reed Excerpts

Thursday 10th October 2024 Written Statements

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

This statement concerns the application made under the Planning Act 2008 for the proposed development by Anglian Water for the Cambridge waste water treatment plant relocation project.

Under section 107(1) of the Planning Act 2008, the Secretary of State must make his decision within three months of receipt of the examining authority’s report unless exercising the power under section 107(3) to extend the deadline and make a statement to the House announcing the new deadline. The Secretary of State received the examining authority’s report on the Cambridge waste water treatment plant relocation development consent order application on 12 July 2024 and the current deadline is 12 October 2024.

The deadline for the decision is to be extended to 12 January 2025 to allow additional time for Department officials to conduct further consultation on emerging planning policy and analysis of responses to the consultation.

The decision to set a new deadline is without prejudice to the decision on whether to grant development consent.

[HCWS122]

Farming and Food Security

Steve Reed Excerpts

Tuesday 8th October 2024 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

I welcome the opportunity to restate this Government’s support for farmers, who produce the food that feeds the nation and protect our beautiful countryside. Farmers are the beating heart of rural communities across the country, promoting economic growth and stewarding our land. Food security is national security in our increasingly unstable world. I am a little surprised that the Conservatives called this debate, after they completely failed our farmers and undermined Britain’s food security. After 14 years of Tory chaos, confidence among farmers is at a record low. More than 12,000 farmers and agri-businesses have been forced out of business since 2010. The Conservatives left a lack of infrastructure to protect farmers from extreme weather and no action at all to reduce soaring energy costs. This Government will correct the mistakes of the past.

[Jesse Norman]

Can the Secretary of State give me some comfort that the money that was allocated for the action plan for the River Wye will be retained, even if not necessarily for the purposes that it was created for? Will he also reappoint the current champion for the river who has so far done excellent work?

[Steve Reed]

I am grateful to the right hon. Member for his intervention and for the representations that he has made to me personally on this issue. I know that he feels passionately about it and, indeed, it is a very important issue. I am afraid that we will need to wait until the conclusion of the spending review, which is normal practice in government, but his words have been heard and his concerns recognised.

Farming and food security are the foundations of our economy, our communities and, indeed, our environment. Farmers were badly let down by the previous Government who offered only sticking plasters to deal with the great challenges faced by British farming. This Government will work with farmers to help them transition to new farming methods that are more sustainable both financially and environmentally. We will reduce the soaring energy prices that have hit so many food producers so hard. There will be no more dodgy trade deals that undermine British farmers. This will be a Government on the side of Britain’s farmers.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

The Secretary of State is right to say that farmers are a very important part of the community. His leader, the Prime Minister, said to the NFU last year that solar farms should not be created by taking advantage of tenant farmers. This is a live issue in my constituency and many others where tenant farmers will be deprived of their livelihood by new solar farms. Will he stand by that commitment and say quite clearly to his Cabinet colleagues that tenant farmers must not lose their livelihood by the creation of a solar farm?

[Steve Reed]

I recognise the point the hon. Gentleman is making and thank him for his intervention. I will comment later in my speech on further support that we would wish to offer tenant farmers. I do recognise the situation that they are in.

[Graham Stuart (Beverley and Holderness) (Con)]

On 13 September, I met representatives from my local NFU and a whole group of farmers who are desperate to see both the recovery fund moneys dispersed and the support for the internal drainage board. Will the Secretary of State please put their minds at rest in this crisis situation in which they find themselves and commit to making sure that that money does flow? Talking about the Budget, we need action now to support those people if what he says about energy security and the centrality of farming to this country is to be more than just words.

[Steve Reed]

It is regrettable that this Government inherited from the previous Government flood defences in the worst condition ever recorded. Of course I recognise that farmers need support, but they need long-term support, not just the sticking plaster approach that we had from the previous Government. We will be looking at how we can do that. The Environment Agency has already made £37 million available, so support will be available to farmers that are facing flooding in the here and now. However, it is in the spending review that we will look at how we can provide that longer-term support so that we can give farmers and, indeed, other businesses and homeowners protection from the kind of severe weather events that we are seeing much more frequently due to climate change.

[Jim Allister (North Antrim) (TUV)]

While the Secretary of State explains to the House what he is doing and what he will do, will he spare a thought for the farmers of Northern Ireland? Our agrifood industry is shaped and controlled not by the laws that this House makes, not by the laws that the devolved Parliament makes, but by the laws made by a foreign Parliament, namely the European Parliament. In more than 300 areas of law, 120 of which affect our agrifood industry, that is how our laws are made. How is that even approaching being democratic and how is agrifood in Northern Ireland meant to be shaped to meet its needs if its own representatives cannot even make or change the laws that govern it?

[Steve Reed]

I am very pleased to say that I have already had two meetings with the Northern Ireland Environment Minister to talk about how we can co-operate better to support farmers in Northern Ireland. I have also been speaking with my right hon. Friend the Secretary of State for Northern Ireland, who shares that interest.

[Alistair Strathern (Hitchin) (Lab)]

Farmers and families across my constituency were again hit by devastating flooding recently. Does the Secretary of State agree that the continual recurrence of these issues highlights the previous Government’s failure for far too long to take flooding seriously? Can he reassure farmers and families right across my rural community that he will take all the action needed not only to mount a co-ordinated, multi-agency response in the aftermath of flooding, but to ensure proper mitigation in the long term?

[Steve Reed]

I had the pleasure of visiting my hon. Friend’s constituency and a farm there during the election campaign, and I thoroughly recognise the point that he raises. It is a little hypocritical, is it not, for the Conservative party to complain that not enough is being done on flooding, when their Government left flood defences in the worst condition ever recorded?

[Dr Andrew Murrison (South West Wiltshire) (Con)]

rose—

[Steve Reed]

I will now make a little progress. I have taken quite a few interventions, and other Members want to speak.

Our new deal for farmers will boost Britain’s food security, protect our environment and drive rural economic growth by tackling the root causes of the long-term issues they face—climate change, rising prices for energy, feed and fertiliser, unfair supply chains, and access to labour. We will ensure that environmental land management schemes work for farmers, and where funding is allocated for farmers we will make sure it reaches farmers, ending the Tory underspends that saw hundreds of millions of pounds held back. We will improve these schemes by working with farmers to boost food security and promote nature’s recovery, including upland, lowland, grass and tenant farmers.

Upland farmers have been left behind. Farmers in the uplands have been losing their basic payments each year, but have not been able to access new schemes. We have arrived in office to find no credible plan to address that, leaving thousands of the most remote and isolated farmers without a clear path for their families, businesses or communities. We need a fair approach for all farmers.

[Mr Toby Perkins (Chesterfield) (Lab)]

We all understand that my right hon. Friend has inherited in his Department a panoply of different crises, from the crisis facing our farmers to flooding. He is absolutely right that trying to get the environmental land management scheme to achieve what was originally intended for it is one of the biggest issues facing Britain’s farmers. I appreciate it is very early days, but what is his sense of what the major failures are right now, and what might we look forward to in his plan to sort them out?

[Steve Reed]

The environmental land management schemes are taking the right approach, but they need to work better for all farmers. Too many farmers feel that they cannot access them or do not get the support that they need. My proposal is not that the Government will dictate to farmers how those changes should happen, but that we should work with farmers, in a partnership, to hear their voices and allow them to influence changes to those schemes that will make them more effective in achieving the many outcomes that we seek to get from that Government funding.

We will not tell farmers how to farm. We will achieve this by working together with them in that new partnership. I recently met the Tenant Farmers Association to hear its views about improving support for tenant farmers. I agree that the proposal for a tenant farming commissioner has merit, and we will make an announcement shortly.

Our new deal will protect farmers from being undercut in trade deals. The Conservative Government’s trade deal with Australia and New Zealand is a disaster for our British farmers. They were sold down the river, as the Conservative party allowed the import of food produced to standards so low that they would be unacceptable in this country. Instead of backing British farmers, the Conservatives undermined British farmers. We want to see more support for British farmers—more opportunities for British farmers, not fewer.

We have already delivered early first steps for British farmers, securing access to the US market for UK beetroot growers and to the South African market for poultry producers. Instead of the botched Tory Brexit deal that threw up barriers to trade and blocked Great British food exports, we will seek a new veterinary agreement with the EU, to tear those barriers down and get our food exports moving again, putting money straight into the pockets of British farmers.

[Kevin Hollinrake]

I am grateful to the Secretary of State for giving way a second time. He talks about the importance to communities of farmers, particularly intergenerational farmers. We understand that consideration is being given to withdrawing agricultural property relief in the Budget at the end of October. Will he confirm that that will not happen? If it did, it would be the end of intergenerational farming in this country.

[Steve Reed]

I understand the hon. Member’s point and the importance of intergenerational farming, but he will understand that I cannot anticipate the outcome of the Budget process.

[Ms Stella Creasy (Walthamstow) (Lab/Co-op)]

Does the Secretary of State agree with me about the urgency of a sanitary and phytosanitary deal and, probably, of rejoining the pan-Euro-Mediterranean convention, because of the damage being done to British farmers by Brexit border taxes? The National Farmers Union tried to warn the shadow Secretary of State that farmers were facing an “existential threat” because they cannot import the seeds they need—tomato seeds, pepper seeds and oil seed rape. We now hear from ports that very few checks are being done, making a mockery of the idea of any food security. Does my right hon. Friend agree that when the shadow Secretary of State makes lists of what could happen, apologising for the mess they made at the border should be at the top?

[Steve Reed]

As always, my hon. Friend makes an important point very eloquently. During the election campaign, I spoke to farmers up and down the country—as I did before that and have done since—who were absolutely furious that, having been promised continued access to the European markets where they were selling their great, high-quality British produce, they were instead taking a financial hit as trade barriers were thrown up and they could no longer sell into those markets. We want to correct that by seeking a new veterinary deal with the European Union to get exports moving across the borders again.

We will not allow food producers to continue to bear the brunt of unfair supply chains. Farmers deserve a fair price for the food they produce, and we will bring forward proposals to make sure that happens. One of the biggest cost rises affecting British farmers has been energy bills. We will prevent future price shocks by switching on GB Energy, so we can harness the power of wind, wave, solar and nuclear energy to keep bills down and take back control of our own energy supplies from foreign fossil-fuel dictators like Vladimir Putin.

[Dr Caroline Johnson]

The Secretary of State talks about the importance of cheap energy, solar and food security. Clearly, land needs a balance. What representations has he made to the Energy Secretary to be clear that the best farmland should not be used for ground-mounted solar?

[Steve Reed]

The hon. Lady has made that point to me before, and I reassure her that, even at their most ambitious extent, solar farms would not cover more than 1% of agricultural land. For farmers, climate change is also a significant concern. The reason we are seeing such heavy rainfall is climate change: that is what is leading to the flooding and droughts that are damaging farmers. If we do not take action to transition to a clean energy economy, farmers will continue to suffer from things that none of us wish them to have to deal with.

[Ann Davies (Caerfyrddin) (PC)]

As a dairy farmer and a tenant farmer, I perhaps have unique experience in this matter. Obviously I am Welsh as well, and I realise that agricultural policy is devolved to Wales. This issue involves the aftermath of Brexit. Under the EU common agricultural policy, Wales received around 9.5% of the total UK CAP budget, which was based on our rural lifestyle in Wales and farming criteria such as the size, number and nature of farms. If allocations are calculated using the Barnett formula and population figures instead, we would have only 5.6% of the total agricultural budget.

[Ann Davies]

Sorry—I am very new and I apologise. Can the Secretary of State guarantee that Wales will not miss out on any increases in the UK funding settlement for agriculture and rural development due to the reduced allocation?

[Steve Reed]

I thank the hon. Lady for her intervention and can reassure her that I have had multiple conversations with the Welsh Deputy First Minister, who is also the Environment Minister in Wales, to ensure that those concerns are heard as we go through the spending review process. It is always difficult in the couple of weeks running up to the Budget, because I cannot give definitive answers, as she will understand, but that will become clear once the Chancellor has made her statement towards the end of the month. We will use the Government’s purchasing power to buy more British produce for our hospitals and prisons—again, putting money directly into the pockets of British farmers.

Crime was another issue that was running out of control under the Conservatives—and no wonder, after they took so many police off our streets. Crime in rural areas has skyrocketed by almost a third since 2011. Our new deal for farmers will see the first ever cross-Government rural crime strategy to crack down on antisocial behaviour, fly-tipping and GPS theft—issues that have repeatedly been raised with me by farmers and people living in rural communities.

[Greg Smith (Mid Buckinghamshire) (Con)]

Will the Secretary of State give way on that point?

[Steve Reed]

If the hon. Gentleman will allow me, I will make a little progress. I have taken up an awful lot of time and am only about halfway through, and I want to leave time for others to speak.

It should be of huge concern to every one of us that the suicide rate among male farmers is three times the national average, and the highest among any sector in the economy. I take this opportunity to pay tribute to mental health charity the Royal Agricultural Benevolent Institution for its excellent work in tackling that alarming and unacceptable situation. We will tackle the mental health crisis in our rural communities by recruiting 8,500 more mental health professionals across the NHS and setting up a Young Futures mental health hub for under-25s in every rural community.

After fewer than 100 days in office, I chaired the first meeting of the new flood resilience taskforce. Funding allocated to flood defences had been left unspent for years, but we will speed up the construction of flood defences, drainage systems and natural flood schemes so that we can offer farmers and rural communities better protection from extreme weather in the long term.

Members are aware that the Government are currently conducting a spending review to fix the foundations of our economy after the previous Government crashed it and left behind a staggering £22 billion black hole in the public finances—[Interruption.] What they did is not funny; the problems that it has caused British farmers, and people living in our rural communities, are not funny. I think the Conservatives should show a little more humility after what they did.

While that process is live, there is little that I can say on individual spending areas. I can say, however, that we recognise the challenges caused by the wet weather earlier in the year and in recent years. That is just one challenge among many for farmers right now. A few weeks ago, I met a farmer in Essex who has a case of bluetongue in his herd. I am grateful to farmers for complying with movement restrictions intended to stop the spread of that disease. We will confirm plans for the farming recovery fund, investment in internal drainage boards and other grants as we complete the Budget process. We will also work with farmers to reduce agricultural water pollution from run-off, and to look at ways of improving their nutrient management and the effectiveness of regulations.

Boosting productivity in farming is hugely important. Grants and direct investment are part of achieving that, but we need to think bigger and look for more enduring solutions.

[Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)]

The Conservatives sold farmers out, undercutting them with dodgy trade deals with New Zealand and Australia. To return to my right hon. Friend’s previous point, this Government have secured for UK beetroot growers access to the US market worth approximately £100,000 per year in increased exports. Does he agree that the contrast in trade agreements could not be starker? In trade deals, Labour protects farmers; the Conservatives sell them down the river.

[Steve Reed]

I happily agree with the points that my hon. Friend has made. The Labour party is on the side of farmers.

The UK has world-class science and innovation capabilities. Developing new technologies and techniques for use by farmers and growers will be critical for our food security, for business resilience to climate change, and for promoting economic growth. We have set up a new British infrastructure council to steer private investment in rural areas, including in broadband roll-out across rural communities and in electricity grids to power our growth. We are reforming the apprenticeship levy to improve rural apprenticeships and skills and give farmers the freedom and flexibility to upskill their workforce, and are opening specialist technical excellence colleges to match skills to local economies.

A few weeks ago, the Minister responsible for farming and food security, my hon. Friend the Member for Cambridge (Daniel Zeichner), tabled a statement on the previous Government’s astonishing underspends in the farming budget. They failed to get £300 million that was allocated to farmers into the hands of those farmers. I am working with Treasury Ministers to ensure farmers have the public investment they need, and although the financial inheritance from the previous Government is appalling, there is no shortage of positive things that the farming budget can and will deliver: cleaner air and water, food security, abundant wildlife and biodiversity, and thriving and connected rural communities. Those things are the foundation of a sector worth billions of pounds—the largest manufacturing sector in the country. I can assure this House that I am making the strongest case for that funding, despite the financial black hole and flatlining economy the Conservatives left behind.

Food security is national security, and of course, energy security is also national security. This Government will deliver the mandate we were elected on. Our plans to boost solar power do not risk the UK’s food security: even in the most ambitious scenarios, less than 1% of the UK’s agricultural land would be used for solar. More broadly, there are challenges and trade-offs. Land is finite, but the pressures we put upon it are increasing.

[Several hon. Members rose—]

[Steve Reed]

I will finish my speech, if Members do not mind.

That is why this Government will do what the previous Government failed to achieve, despite repeated promises. We will publish a land use framework, providing more clarity and starting a conversation on land use and how we can maintain food production, restore nature and grow the economy.

Farmers do a fantastic job for our country. They produce the food we eat and steward our beautiful countryside, and they deserve our support, but the previous Government let them down. Our new deal for farming will offer farmers a fresh start—action to cut energy bills, action on rural crime, action to open markets to trade and export, and action to cut the appalling levels of mental ill health that affect farmers right across our country. I welcome this debate and the chance to restate this Government’s support for farmers. After 14 years of failure, change has begun.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

Oral Answers to Questions

Steve Reed Excerpts

Thursday 12th September 2024 Commons Chamber

[Sir Julian Smith (Skipton and Ripon) (Con)]

1. What steps he is taking to promote innovation in the agricultural sector.

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

First, I add my congratulations to the Speaker’s Chaplain on her distinguished tenure, and to Terry Wiggins, who has been here much longer than all of us.

I thank the right hon. Member for his question. The Government recognise the importance of innovation in supporting farmers to boost Britain’s food security, drive productivity and improve nature’s recovery. The UK has world-class science and innovation capabilities. The Government will promote the UK as a great place for technology innovators, which will drive investment, economic growth and create high-skilled jobs, supporting farmers to embrace the latest technology and best practice.

[Sir Julian Smith]

One of the challenges for risk-taking farmers is the regulatory environment. Will the Secretary of State update the House on how he will bring together Natural England, the Environment Agency and other agencies to reflect and be much more responsive to the enterprise culture in farming?

[Steve Reed]

I share the right hon. Member’s interest in the need for effective regulation. I will soon make an announcement about our intentions to review regulation to ensure that it is fit for purpose across the Department and helps to achieve the priority objectives that we have set out as a new Government and ministerial team.

[Claire Young (Thornbury and Yate) (LD)]

2. What steps his Department is taking to increase uptake of environmental land management schemes.

--- Later in debate ---

[Sarah Coombes (West Bromwich) (Lab)]

4. What recent progress he has made on increasing the accountability of water companies for pollution discharges into waterways.

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

I welcome my outstanding former employee to her place in the Chamber, and thank her for her question. After 14 years of Conservative failure, the public are furious at the levels of sewage being released into our rivers, lakes and seas. Last week, this Government introduced the Water (Special Measures) Bill to strengthen the power of the water industry regulators and turn around the performance of failing water companies. The Bill will ban bonuses for chief executives when environmental standards have not been met, and will bring forward criminal charges for obstruction.

[Sarah Coombes]

Our canals are the pride of the Black Country: they are very important to our communities, our wildlife and our tourism. Unfortunately, like the rest of the waterways, we have seen serious pollution incidents in the canals in recent years. What are the Government doing to protect our canals and waterways and clean up the failures of the last Government?

[Steve Reed]

I congratulate my hon. Friend on being such a champion for waterways in and around her constituency. Toxic pollution of canals or, indeed, any other waterway is disgraceful and unacceptable. The previous Government cut resources for the regulators, leaving them incapable of investigating all the incidents that were happening. We are putting firepower back with the regulators through the Water (Special Measures) Bill, which will allow them to claw back the costs of prosecution from the organisations that are prosecuted, so that they can carry out more enforcement against organisations that got away scot-free with polluting our waterways under the previous Government.

[Dame Caroline Dinenage (Gosport) (Con)]

Dozens of homes and businesses across Alverstoke village in my constituency were flooded with polluted water from the Alver creek when Storm Pierrick caused a tidal surge in April this year. We now hear that, without urgent flood protection measures, that could be a one-in-20-years scenario. Those measures will cost an extra £3.5 million, and we are waiting desperately for news from the Secretary of State’s Department about whether we have been awarded that flood and coastal erosion risk management grant so that the work can start. We are now heading into winter, with higher tides, and some of my constituents still have not been able to return to their homes and businesses after the previous flooding event. What reassurance can the Secretary of State give me that that announcement is coming soon, and will he please meet me urgently to discuss this scenario?

[Steve Reed]

I congratulate the hon. Member on winning her seat in the general election and taking her place. I will certainly make sure that the relevant Minister is able to meet her to discuss that issue in more detail. I am very pleased that the first meeting of our new flood resilience taskforce will be later today. The intention of that organisation is to ensure much better co-ordination between Whitehall at the centre, where the resources are held, and the agencies on the frontline that need to be taking appropriate action as quickly as possible to protect communities, businesses, farms and all of the rest of the people who can be affected by flooding, particularly given that we are seeing more frequent severe weather incidents because of climate change.

[Mr Speaker]

I call the shadow Minister.

[Robbie Moore (Keighley and Ilkley) (Con)]

Sound management of water companies is of course vital if customers are to receive the high level of service they expect and environmental performance obligations are to be strictly adhered to. Some water companies are better managed than others, so will the Secretary of State guarantee that in his efforts to hold water companies to account, no offer of a regulatory easement will be provided—in other words, no permission to lower standards, relax environmental permits or reduce agreed levels of investment will be provided to any water company, no matter their financial circumstances, by the Government or the regulator?

[Steve Reed]

I will be announcing later this autumn—in just a few weeks’ time—a review of the entire water sector, including regulation. In particular, I want to make sure that regulation is as tough as possible to ensure that the practices and, frankly, the abuses that were going on can no longer happen. Part of that will be complete transparency about what is going on—on the part of the water companies, and also, I have to say, on the part of Government. It was very disappointing that, when he was a Minister, the hon. Gentleman tried to cover up the extent of sewage spills before the election, telling Environment Agency officials not to put the key figures on the front page of its environmental portal.

[Mr Speaker]

Order. Saying that the hon. Member “tried to cover up” is suggesting that a Member is lying, and I do not—

[Mr Speaker]

The right hon. Member cannot raise a point of order now. He has been here long enough to know that they come at the end of questions. [Interruption.] Order. I am dealing with this. We really have to reflect on what we say about other Members in this House, and I would like the Secretary of State to withdraw what he has suggested.

[Steve Reed]

I withdraw that comment. Perhaps I should have said that the shadow Minister could have been more open and transparent. [Interruption.]

[Mr Speaker]

Order. I am not going to open up that question. We will now have the second question from Robbie Moore.

[Robbie Moore]

Thank you, Mr Speaker.

So there we have it: the Secretary of State’s first outing at the Dispatch Box, and he was not able to clearly answer the question I asked. Will the Secretary of State confirm that, in fulfilling his obligation to hold water companies to account, he will not issue regulatory easements, no matter their financial circumstances? Will he answer that question clearly right now from the Dispatch Box?

[Steve Reed]

As I have already said, we are looking to strengthen, not weaken the regulation. The regulation was inappropriate. It is not just the regulation itself, but the lack of resources the regulators have had. That is why the Water (Special Measures) Bill we are introducing will allow the regulators to claw back resources from water companies that are successfully prosecuted, so that they have the firepower to prosecute further wrongdoing by those water companies or others responsible for it.

[Harriet Cross (Gordon and Buchan) (Con)]

5. If he will maintain the level of funding for farming.

[Martin Vickers (Brigg and Immingham) (Con)]

12. If he will maintain the level of funding for farming.

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

The Government will restore stability and confidence in the sector by introducing a new deal for farmers to boost rural economic growth and strengthen food security alongside nature’s recovery. The Government are currently conducting a spending review, which will conclude in October. Departmental budgets, including spending on farming, will be confirmed through this process.

[Harriet Cross]

The Labour party manifesto rightly stated that the Labour party

“recognises that food security is national security.”

I agree, but those words must be matched with actions. We have already asked today about future budgets, but have not heard any answers. Will the Secretary of State confirm that there will be no real-terms cuts to the agriculture budget?

[Steve Reed]

As the hon. Member will know, there is a spending review process going on, which will culminate with announcements in the Budget. That is the point at which all of that will be made clear and apparent.

I would gently remind the hon. Member that it was her Government who underspent the farming budget by £130 million in the previous financial year. That money should have been in the pockets of farmers, who desperately need it for the work they are doing to provide the food we want to eat and to help nature’s recovery, yet that Government were too incompetent to get it out the door. This Government will make sure that the money allocated to farmers is handed over to farmers so that they are able to use it for the purposes for which it is intended.

[John Lamont]

Being an MP for the Scottish Borders, I am lucky enough to represent some of the best farmers and food producers in the whole of the UK. However, as we have heard, the new Government have chosen not to give them any clarity about their future funding settlement, so I ask again: can the Secretary of State commit not to cut the funding for farmers and food production?

[Steve Reed]

I congratulate the hon. Gentleman on his appointment as shadow Secretary of State for Scotland.

As I said previously, a spending review process is going on. No Government announce their Budget in advance of the Budget taking place. I cannot do that either, but I assure the hon. Gentleman that we are keen to ensure that farmers in every single part of the United Kingdom receive the support they need to do the job that we as a country need them to do to ensure that we have the food security that we want, because it is part of our national security, and that this country deserves.

[Martin Vickers]

Farmers in my constituency who receive funding through the sustainable farming incentive are concerned that some of the schemes are becoming over-subscribed and therefore their income is reducing. Will the Secretary of State give a reassurance that that particular initiative will continue and will do so at the existing funding levels?

[Steve Reed]

I have been clear, throughout the election campaign and since, that we do not intend to overturn the applecart in respect of the old schemes in general, including the SFI. We support the principles behind the schemes and want to see them continue. In terms of what the hon. Gentleman alluded to, there are ways to make them work better. My intention is to work closely with the farming sector and the nature sector to make sure that we get the maximum bang for our buck for every single penny that goes through those schemes, and that the farmers who need it get the support they deserve.

[Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)]

British farmers have been badly let down by crippling trade deals, skyrocketing energy prices and devastating floods. Will the Secretary of State outline how he will restore confidence and support British farmers?

[Steve Reed]

My hon. Friend is absolutely right. There are all sorts of ways in which farmers have felt very let down over the past 14 years, and that has contributed to the tragic situation today in which we have the lowest levels of confidence ever recorded in the farming sector. Our new deal for farming is intended to start to sort part of that out.

My hon. Friend referred to trade deals that undermine farmers; they are furious about that, and at the National Farmers Union’s Back British Farming Day reception yesterday farmers made that clear to me again. We have ruled out any future trade deals that undercut and undermine British farmers in the way the previous Government’s Australia and New Zealand trade deals did.

[Nick Smith (Blaenau Gwent and Rhymney) (Lab)]

May I support your thanks to Terry Wiggins, Mr Speaker? He has been a great servant of this House and is a lovely bloke.

The Conservative complaints about support for farmers are a bit lame. Has the Secretary of State had the opportunity yet to work out why there was an underspend of over £100 million in the agricultural budget last year?

[Steve Reed]

My hon. Friend raises an important point. Opposition Members are asking me today about budget decisions that they know cannot be announced before the Budget, when presumably they are aware—because the statement has been laid—that they underspent the previous budget to the tune of £130 million. It is not that they were not warned about this either, because while we were in opposition we were making points, as were farmers, about underspends and the desperate need to get that money back out to the farmers who needed access to it. We will review the situation, find out exactly what went wrong and publish that information as soon as it is available.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

Somerset is home to 8,500 farmers and food producers, which is more than any other county in the UK. They are worried that the £130 million of support will be stripped from them because the previous Government replaced the basic payment scheme with systems that were too complicated for many farmers to access. Notwithstanding the previous comments, will the Secretary of State confirm that he will not be slashing their funding, and give farmers the confidence that they need to be able to invest in the future and secure the nation’s food security?

[Steve Reed]

I am delighted to congratulate those farmers, producers and growers in Somerset. It is a fine county and they do an incredibly good job, of which the hon. Lady is rightly proud. I hope she will understand that I cannot make comments about the Budget in advance; I would be in deep trouble with the Chancellor of the Exchequer, which is something I wish to avoid. At the appropriate time, we will make absolutely clear what we intend to do. My intention is to fight the corner of farmers through the spending review process so that we can make sure they receive the resources they deserve.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

6. What steps he is taking to support farmers.

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[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

Scotland’s financial allocation will be confirmed through the spending review that concludes in October. As agriculture is devolved, it will be for the Scottish Government to allocate funding to farmers in Scotland. The UK Government are supporting farmers across the country with a new deal to boost economic growth and strengthen food security. We will protect farmers from being undercut in trade deals, make the supply chain work more fairly and back British produce.

[Graeme Downie]

Farming and agriculture are a vital part of the economy in west Fife and in my constituency of Dunfermline and Dollar. Yesterday, I was delighted to meet a delegation from NFU Scotland. Given the economic, social and environmental value of active farming and crofting in Scotland, and its significant contribution to the wider UK economy, will the Secretary of State share what he will do to ensure that food security and food production in Scotland remain at the heart of our national security?

[Steve Reed]

Many of those issues are devolved to the Scottish Government. I have already held meetings with the Scottish Agriculture Minister and we are due to meet again next week, and I will be making sure that we have a strong working relationship.

Where the UK Government have a role in particular is with trade deals. Many British producers were upset that because the previous Government erected barriers to trade when they were told that they would continue to get open access to the European markets, they could no longer continue to sell their great British produce into those markets, damaging them economically and financially. We will be seeking a new veterinary deal with the European Union to get those exports moving again.

[Mr Speaker]

I remind those on the Front Bench that it is topical questions, so questions and answers have to be short and punchy. The thing is, I have to try to get in as many as I can. Let us see a good example of that with the shadow Secretary of State.

[Steve Barclay (North East Cambridgeshire) (Con)]

The Secretary of State has repeatedly talked tough with the water companies, yet the Water (Special Measures) Bill that he announced actually weakens a number of measures, such as the automatic fines for category 1 and 2 prosecutions, and removes the unlimited penalties that would apply. He said that the review of water regulation would strengthen requirements on water firms; will he therefore confirm to the House that there will be no regulatory easements as part of that review?

[Steve Reed]

The very Bill that the right hon. Gentleman referred to strengthens regulation. We will be looking further at regulation through the review. The intention will be to make it stronger, not weaker, because it was far too weak under the previous Government and we need to turn that around.

[Dr Beccy Cooper (Worthing West) (Lab)]

T3. Raw sewage was discharged into our rivers and seas for a shocking 4 million hours last year. Will the Minister reassure our coastal communities, including my own in Worthing West, that water companies will be held accountable for the necessary investment to address the systemic and chronic pollution of our waters?

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[Helena Dollimore (Hastings and Rye) (Lab/ Co-op)]

T4. My constituents in Hastings and Rye got their water bills this month. Many of them were shocked to see their bills going up despite the failures of Southern Water, which include sewage dumped along our coastline, flooding in our town centre and leaving us without water. It has even charged us for the five days when the taps ran dry. What are the Government doing to clean up the mess left by Southern Water and by the Conservative party?

[Steve Reed]

What has been going on in my hon. Friend’s constituency is completely unacceptable. I know that she has been a huge champion for cleaning up the water in that part of the country. One of the things we are looking at doing is doubling the rates of compensation from water companies when they let down their customers as she described.

[Dr Neil Hudson (Epping Forest) (Con)]

T5. Animal and Plant Health Agency staff deserve our thanks for tackling a number of challenges facing our biosecurity. Given the outbreaks of bluetongue in East Anglia, the advance of African swine fever across Europe, and the existing threats posed by avian influenza and bovine tuberculosis, will the Minister support the APHA by affirming that the Government will fully commit to the redevelopment of its HQ in Weybridge—Labour rightly called for that in opposition—to protect the UK’s biosecurity, and human and animal health?

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[Adrian Ramsay (Waveney Valley) (Green)]

T6. Any cuts to the environmental land management scheme would be a blow to farmers and to the Government’s climate and nature recovery missions. The nature-friendly farming budget needs to be not just maintained but increased. Does the Secretary of State agree with the economic assessment made by the Royal Society for the Protection of Birds, the National Trust and the Wildlife Trusts that the environmental land management budget will need to be increased to around £5.9 billion a year to meet the targets?

[Steve Reed]

The Government remain fully committed to the ELM schemes, and my right hon. Friend the Chancellor will make announcements about the budget at the appropriate time.

[Dr Marie Tidball (Penistone and Stocksbridge) (Lab)]

Under the Conservative Government, there were almost 18,000 hours of sewage dumping in my constituency in 2023. What is the Minister doing to ensure that Yorkshire Water cleans up its act and our beautiful River Don?

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[Steve Reed]

We will publish all information relating to the Bill at the appropriate time during its passage through Parliament.

[Chris Vince (Harlow) (Lab/Co-op)]

What action will the Secretary of State and his Department take to support farmers in addressing rural crime, which is a huge issue for farmers in my constituency and across Essex?

[Steve Reed]

I am pleased to say that I made a joint announcement with the Home Secretary that this will be the first Government to have a cross-departmental rural crime strategy intended to cut the huge impact of rural crime on communities.

[Christine Jardine (Edinburgh West) (LD)]

Biodiversity net gain is critical to replacing the loss we are experiencing in our environment and is now mandatory in planning applications—but with exemptions. Those exemptions mean that most developers are avoiding biodiversity net gain, so what will the Government do to tighten up the exemptions and make that more difficult?

[Ben Goldsborough (South Norfolk) (Lab)]

The bluetongue outbreak in Haddiscoe is seriously concerning, and it is crucial that the Animal and Plant Health Agency is provided with sufficient resources to conduct testing swiftly. Will my right hon. Friend meet me to discuss this urgent matter?

[Steve Reed]

I am happy to ensure that the relevant Minister meets my hon. Friend to discuss the issue. However, the APHA and other authorities are doing a good job right now of containing a very worrying incident of bluetongue.

[Dr Kieran Mullan (Bexhill and Battle) (Con)]

In Bexhill and Battle we get to enjoy the amazing High Weald area of outstanding natural beauty, but it is expansive, covering more than 1,400 sq km. What advice did the Minister’s Department give the Housing Department on taking such issues into account when centrally imposed housing targets are putting pressure on the area as a whole?

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[Steve Reed]

I will happily ensure that my hon. Friend gets a meeting, perhaps with our hon. Friend the Member for South Norfolk (Ben Goldsborough), to discuss the issue in her region.

[Mr Joshua Reynolds (Maidenhead) (LD)]

Before the school summer holidays, 26 year 3 students at Holy Trinity primary school in Cookham wrote to me about sewage in the Thames. They are really concerned that water companies are allowed to get away with putting sewage in our water. Will the Minister meet me and students at Holy Trinity to discuss their concerns?