Water Scarcity

Anna Dixon Excerpts

Tuesday 9th December 2025 Westminster Hall

[Lisa Smart (Hazel Grove) (LD)]

It really is a pleasure to serve with you in the Chair, Mr Stuart. I congratulate my hon. Friend the Member for Horsham (John Milne) on securing this timely debate. I am grateful to have the opportunity to raise an issue of huge importance for my Hazel Grove constituents, namely the impact of water scarcity on the UK’s canal network.

The UK is unique in having a network of more than 2,700 miles of waterways, much of it 250 years old and still supporting many businesses. My constituency, the finest in the land, is lucky enough to contain stretches of both the Macclesfield and Peak Forest canals, including the famous and beautiful Marple lock flight, which is an especially beautiful part of my patch—a green vein running through High Lane, Marple, over the Marple aqueduct, and through Romiley and Woodley on to Tameside. Earlier this year, I launched a campaign to make Marple locks, one of the steepest and longest flights in the country, a UNESCO world heritage site.

Marple is one of the best examples of industrial waterways in the UK. Our canal heritage makes it one of a kind, and it is our own local slice of great British history. I am a proud and long-standing trustee of the Stockport Canal Boat Trust for disabled people and their carers—I refer all colleagues to my entry in the Register of Members’ Financial Interests. Not only are our waterways of cultural and historical significance to our communities, but they provide crucial habitats for wildlife and serve as a natural green corridor. Our canals are vital to our nature and our wellbeing, and they contribute hugely to combating climate change. They are vital for water management, and we should do everything we can to protect and preserve them for future generations.

[Anna Dixon (Shipley) (Lab)]

The Leeds and Liverpool canal runs through my constituency of Shipley, and on it is the very famous Bingley Five Rise locks. Because of water scarcity, that lock, and passage through it, has been shut for some time. Does the hon. Member agree with me that as part of managing our water system, it is essential that we keep our canals moving?

[Lisa Smart]

I am grateful to the hon. Lady. I agree strongly that keeping our canals moving is hugely important when we are thinking about how we manage our waterways, how we manage traffic on them, and how we keep them and preserve them for future generations.

Similarly to what the hon. Lady has described, because of a combination of drought and work that the Canal and River Trust had to conduct on some of their large raised reservoirs in line with the requirements of the Reservoirs Act 1975, many reservoirs in my area were drawn down last winter to permit legally required works to take place. As a result, the reservoirs started the year with a lower volume of water. This year, as the CRT told me, we experienced the driest spring in England for 132 years, the driest February to August in England since 1976, and the third driest March to August period on record overall for England, followed by the hottest summer since records began in 1884, according to the Met Office.

During dry seasons, low water levels can cause the canal banks to become unstable, leading to structural damage, erosion and, if left unaddressed, the eventual collapse of the canal. Therefore, it is essential that water levels are managed and maintained to ensure the stability and functionality of canals. When drought conditions are faced, restrictions are placed on boat movements to make the existing water in the canal system go as far as possible. This year, the CRT deemed that restrictions in my area, like in the area covered by the hon. Member for Shipley (Anna Dixon), did not go far enough to conserve water, so it stopped boat movements on the Macclesfield and Peak Forest canals over the summer.

As well as the challenges of a changing climate, there is an increasingly demanding regulatory framework, ageing and deteriorating infrastructure, inflation, higher construction costs and a reduction in Government funding. Without funding changes, I fear that such closures are sadly likely to occur more often. That will have a dire effect on not only the people who live and work on the waterways, but those who visit the canals for their benefits for physical and mental health. For many in my constituency, the canals are an escape from traffic pollution and noise. They provide a sanctuary of peace amid a busy world.

The principal reservoir that feeds the Peak Forest canal is Toddbrook. As a result of damage to the reservoir back in 2019, a key source of water for the canals has not been available of late. The CRT is currently working on a project to restore the reservoir, but without support from the Government, and increased funding to ensure that reservoirs are kept in good working condition, the water scarcity that we have experienced this year could result in more closures of canals and waterways in the future.

I join others, including campaigners from Fund Britain’s Waterways and the Association of Waterways Cruising Clubs, in urging the Government to put real consideration into our canals when allocating funding to ensure that water scarcity does not have negative ramifications for our waterways, and that we can protect these vital national assets for future generations.

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[Anna Dixon]

As the hon. Gentleman may know, the chief exec of Yorkshire Water, while publicly not taking her bonus, took quite a large sum of money from the Kelda Holdings company. Given that lack of transparency at Yorkshire Water, does the hon. Gentleman agree that companies such as Kelda Holdings should not be involved in water, leveraging debt and handing out large secret bonuses to their chief execs?

[Jim Shannon]

I certainly do. I know the Minister is equally concerned about that, and I am hoping that the Minister’s response will give reassurance to the hon. Lady, and indeed to all of us, in relation to that. I think there is something obscene and immoral about these executives getting large sums of money—whatever Department it comes out of and whatever way it is manipulated to get that through—and it is good to know that the Government will be taking some measures to address that.

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

It is a joy to serve under your guidance this afternoon, Mr Stuart. I plan to be here for the next two debates, so we will have a lovely afternoon together as we have apparently just rejoined the EU on a tied vote. The tie means that we win on the away-goals rule, which is good to hear. All legislation should be settled like that in future.

I give massive thanks and congratulations to my hon. Friend the Member for Horsham (John Milne), who not only secured the debate but led it superbly. All contributions from parties present have been excellent, focused on their communities and on trying to solve the issue. It was great to hear the affinity between the DUP and the Liberal Democrats; after all, we are both very fond of the colour orange. It is great to get a perspective from one of the devolved nations.

The amount of water available at any time depends not only on natural supply—rainfall, rivers, aquifers—but on the capacity of the infrastructure maintained since privatisation by the water companies. Demands from households, industry and agriculture also play a significant part. In Cumbria, we have 20 million visitors a year. Those people are very welcome but that is a lot of drinking water, showers and flushed lavatories, and we need the infrastructure to provide that. On top of that, we provide fresh drinking water for millions of people in the north-west of England. Again, we are proud to do so but we are under pressure.

The Environment Agency has projected national and regional deficits in water supply. Deficits will only worsen over the next 25 years as matters are scheduled. By 2050, the shortfall could reach nearly 5 million litres per day—equivalent to more than a third of the water that we currently rely on for public consumption. Outrageous water shortages have been experienced by South East Water customers, who have been referenced by hon. Friends and championed by our hon. Friend the Member for Tunbridge Wells (Mike Martin). Those water shortages could become the experience of people across the country, not just in the south-east region, if we do not radically reform our water industry urgently to ensure that we stop the leaking of billions of pounds of billpayers’ money into the pockets of shareholders and senior executives, when that money should be reinvested in a water infrastructure fit for the British people.

[Anna Dixon]

I am grateful to the right hon. Gentleman—

[Tim Farron]

Not yet.

[Anna Dixon]

The hon. Gentleman—sorry. As he said, Yorkshire has also experienced water shortages. From July this year, we have had a hosepipe ban and reservoirs remain at critically low levels, given what we should expect this season. It was at about 31% of capacity in September. Does the hon. Gentleman agree that Yorkshire Water, like some of the others he mentioned, has failed to invest in the necessary infrastructure to deal with the impact of climate change, as well as rising demand?

[Tim Farron]

The hon. Member makes an excellent point. All this afternoon’s interventions have been good and on the money. Talking about money, this is money leaking out of the industry and not being invested in it. Bonuses and dividends should reward success; clearly, Yorkshire Water and others have failed in their basic task, which is to provide clean water for their communities.

To focus on the scale of the problem, since privatisation the water companies have amassed £70 billion of debt. Adjusted for inflation, they have paid out £83 billion in dividends. That means that on average 30p out of every pound that people pay on their water bills is to service the debt of the water companies, which was racked up to pay dividends. That is a moral outrage.

The main drivers of this impending crisis are clear: climate change; population growth; increased housing demand; business expansion; the demands, which have been mentioned, for huge additional energy and water usage given the growth in AI; pressures on the natural environment; and the growing need to prepare for drought. Those drivers are compounded by historical underinvestment in infrastructure and insufficient demand management.

Successive Governments have comprehensively failed to take climate adaptation measures seriously, guaranteeing misery for communities affected by flooding, wildfires and heat stress. If we are to build new infrastructure, including new homes and data centres—and we must—we must also ensure that water infrastructure keeps pace. That means sustainable drainage, new supply capacity and integration of water resilience into planning from the start. For instance, we should ensure that data centres are built predominantly at coastal locations and that desalination plants are an integral part of their design and key to their gaining of planning consent. Otherwise, we simply will not have the capacity to both provide clean water for our people and be the AI superpower that we desire to be.

The Liberal Democrats have long backed an infrastructure-first approach to development. We cannot allow water infrastructure to remain an afterthought. It is not right that water companies that have failed to invest in adequate sewerage, drainage and water supply infrastructure are able to get away with telling the local planning authority that there is no need for further investment and, at the same time, gain the financial benefit of the extra water bills from new households, while not laying out the extra investment needed to provide for them.

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

It is a pleasure to serve under your chairmanship, Mr Stuart. I thank the hon. Member for Horsham (John Milne) for securing a really important debate on water security and resilience—a topic that has not had as much focus as it deserves for a long time. Water is a vital resource, but one that has over the last half century, unfortunately, received nowhere near enough attention. We are now reaping the consequences of that inaction. In simple terms, our population is 10 million people greater than it was 30 years ago and we have not constructed any new reservoirs in that period; that is why we have ended up with the challenges that we have heard about.

The Environment Agency estimates that, driven by population growth and climate change, there will be a shortfall of nearly 5 billion litres of water a day in this country by 2055—the equivalent of a third of current public consumption. Water scarcity is of course important when we consider drinking water, but there are also dangerous knock-on effects for the environment and for food production, as has rightly been said. Over-abstraction of stretched water sources is having a huge impact on vital habitats such as chalk streams; this year alone, record-breaking droughts have cost arable farmers approximately £800 million in lost production. This was the second-worst harvest on record, and our horticultural industry has been severely impacted.

The hon. Member for Horsham rightly talked about the challenges facing chalk streams and infrastructure, and about the lack of strategy planning for water security and resilience. He talked about the implications for his farming community, where there are water-leakage issues with water companies. Indeed, Yorkshire Water represents my constituency, and we have had hosepipe bans consistently for months now. Given that in September we were at 31% capacity, it is not good enough for water companies across the country, including Yorkshire Water, not to put the level of investment into dealing with not only leakages but water storage capacity-related issues. That is not acceptable for many of our constituents.

[Anna Dixon]

As neighbouring MPs, the hon. Gentleman and I have a shared interest in Yorkshire Water’s performance. As he set out, this is not a recent problem; it has been going on for decades. Given his previous role in the last Government, would he take some responsibility for the consequences of the lack of funding for the infrastructure of our water system?

[Robbie Moore]

As the hon. Member will know, it is down to the regulator to set how much a water company is able to spend on infrastructure projects. Ofwat has not provided water companies with the flexibility they need to provide the correct level of investment. There is significant frustration about that, and that is coupled with frustrations about our planning system that have prevented large water storage schemes from progressing through the system. It is really disappointing that this Labour Government’s Planning and Infrastructure Bill, which is progressing through the House, does not address any of the issues associated with the challenges of increasing water storage and water resilience in this country. That is a real missed opportunity by this Labour Government.

We all know that the last Government took some steps to address the risks of water scarcity. We set a clear direction through the Environment Act 2021 to reduce water consumption by 20% per person by 2038. Although the target will ease demand, we should still be planning to address the larger challenges around increasing water storage. I was proud to help develop the last Government’s plan for water, which set clear objectives to improve efficiency, reduce leaks and plan for increased supply. It is encouraging to see that the Government have announced a further 670 million litres of daily water supply through the proposed new reservoirs, but I challenge the Government on the speed of delivering them, including the Fens reservoir, as mentioned by the hon. Member for South Cambridgeshire (Pippa Heylings). It is frustrating that the Planning and Infrastructure Bill—a key piece of legislation—has not addressed those challenges on the speed of delivery.

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[Emma Hardy]

I commit to taking that to the farming Minister to have a thorough look at it. I am acutely aware of how difficult farmers have had it this year. The flooding in the winter and the drought in the summer have been devastating for them, so I am really keen to see what we can do.

There was a call for a campaign on the preciousness of water, but one already exists: the water efficiency fund campaign, the chair of which will be announced in the new year. It is a fund by Ofwat looking into the communications we need around water and how precious it is.

The Liberal Democrat spokesperson, the hon. Member for Westmorland and Lonsdale (Tim Farron), keeps wanting me to give him spoilers, but I will continue to refuse to give spoilers on exactly what will and will not be in the White Paper. As has been announced—he knows this already—we are going to look at having one powerful regulator and a joined-up, comprehensive approach to regulation across the whole of the industry.

I completely agree with the point that was made about fragmentation; there are so many different plans involved in how much water we need. We need to look at how we can streamline this, make it more straightforward and hold people to account for who is delivering what and when. There is much more to come in the White Paper, as well as the legislation following it.

[Anna Dixon]

I commend the Minister for all she has done so far to address the problems in the water sector, and look forward to the forthcoming water White Paper. I realise she cannot give away too much, but I urge her to look again at some of the recommendations of the People’s Commission on the Water Sector, particularly the idea of a SAGE for water—having an expert advisory panel—and stronger democratic oversight, particularly of catchments. I urge her to look at those ideas again before she finalises her paper.

[Emma Hardy]

I thank my hon. Friend for the work she has done on the People’s Commission. I have read it, and thought there were some interesting suggestions in it. There is so much consensus on this issue; everyone fundamentally wants the same thing—enough water, including for farmers, growth and the general public. Furthermore, everyone wants to do that in a way that does not damage the environment or too expensive for customers. There is so much consensus on which we can all build when we tackle this issue.

On the issue of performance-related pay, in a report on 5 November, Ofwat highlighted the broader issue of a lack of transparency when it comes to executive remuneration across the water sector. It noted in particular the examples of Yorkshire Water and Thames Water, which made retention payments from the parent company. Due to that, Ofcom will consult on requiring companies to publicly report in full the details of all executive remunerations, including explanations of what the remuneration relates to. This is intended to apply to company accounts in 2025-26. In a nutshell, it will get a better grip on the situation.

Lots of Members mentioned canals. I spoke with the Canal and River Trust and I hear the difficulties it has had, mainly because of the drought. When water becomes more scarce, of course that creates a problem for canals. I acknowledge that it has been a particularly difficult year. Many Members talked about chalk streams. One of the best things we can do to support chalk streams is to reduce over-abstraction.

There were lots of comments about how we will deal with future water use and make sure that we have all the water we need. There is some good news that I think everyone here might become very excited about, as I have. It is the building regulations consultation, which is happening at the moment and lasts until 16 December. If any hon. Member has not responded to that consultation, I encourage them to do so. It is considering how we can make homes more water-efficient, including the use of grey water, water reuse and what potential future standards could be. The outline proposal is for the minimum standard to be reduced from 125 to 105 litres per day and there are even options for a tighter standard, which range from 110 to 100 litres a day.

The consultation is also looking at evidence on water reuse systems in new developments, so there is quite a lot in it. That is really exciting, because these ideas will enable customers to save money on their water bills and on their energy bills, because they will not have to use as much energy to heat their water. They also support the environment and our house building targets. As I say, the consultation is quite exciting, and it closes on 16 December.

We also intend to introduce mandatory water efficiency labelling to help customers to make informed choices about different appliances when they buy products for their home. We believe that intervention alone will save 23 billion litres of water over 10 years. Building new houses to the highest potential for water efficiency leaves room for further growth in the future. There are quite a lot of exciting things happening in this sector. [Interruption.] I am now being coughed at, which I think means that I should shush.

I again thank the hon. Member for Horsham for securing this debate. I am sure it will not be the last time that we talk about the importance of water scarcity. We all have a role to carry the message that water is a precious resource, which is necessary not just for us but for farmers and the environment. I look forward to continuing the debate on this subject in future conversations about water after Christmas. Merry Christmas.