Environmental Protection

Damian Green Excerpts

Tuesday 18th July 2023 Commons Chamber

[Mrs Natalie Elphicke (Dover) (Con)]

The title of these statutory instruments is “Environmental Protection”, but they should perhaps properly be named as the continued protection of the over-mighty quangos of Natural England and the Environment Agency. I am concerned to see that no additional powers or extension of their powers are given without their also being fundamentally reformed, together with a modern, fit-for-purpose water regulation structure, and I have made that case before in this place.

I understand that the purpose of these regulations is to change the balance of costs and fines for water-based pollutions so that the natural market drivers will make it less expensive to comply with investing in upgrading infrastructure, rather than to pay the cost of pollution. If a water company gets an eye-watering, attention-grabbing fine, the investors and managers will be pressed to take action. I understand that the intention is that no consumer will pay, either by increased charges or decreased investment. Furthermore, I understand that arrangements will be made to keep the value of fines for investment in the particular region affected.

I know that the Secretary of State and the Minister—the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Taunton Deane (Rebecca Pow)—are personally deeply committed to this issue. They have led the way in this House with groundbreaking legislation and action. However, it has been my experience of Ofwat, Natural England and the Environment Agency that good intention may not translate into effective delivery, and I would like to expand on that.

Tackling sewage has been one of my primary pieces of work as the Member for Dover and Deal. It is an issue I care about very deeply, because repeated sewage flooding into people’s homes is incredibly damaging, and devastating for those affected. They find themselves constantly on alert for flood warnings, with carpets and possessions damaged or destroyed, and back gardens watered by things other than rain, while insurance premiums soar and houses are difficult to sell. That is why repeated sewage flooding is subject to specific regulatory intervention.

One of my earliest challenges has been to address decades-long sewage flooding in the town of Deal, and in Albert Road in particular. I did all the things that MPs normally do. I met residents, wrote letters, spoke in this place, met Ministers, asked Ofwat to use its regulatory enforcement powers, and met the chief executive of Ofwat to make the case, but none of that moved the dial. Why was that? Because, when I finally managed to get out of Ofwat what was going on, it would not use its regulatory powers because there was not an agreed solution.

At the heart of the problem was a traditional Bazalgette system, or the combined surface water and sewage approach that we have had in our country for a very long time. That system applies in one part of Deal, but not in the rest, and it was not physically possible to separate out the combined system within the historic structure of the town, even if it were financially viable to do so. Every party involved following every sewage issue—from the highways authority to councils, the drainage board and the water company—each had a different technical report and view, and each of them put responsibility for solving it on the other.

Pretty much my whole career has been one of problem solving in one form or another, and I knew a bit about water infrastructure and regulation because I carried out a year-long research programme into it before I came into this place, so I decided to do what I would do if I was not an MP. I picked up the phone to the chief executive and asked to meet. I put forward a proposal to set up a joint taskforce that was chaired by the then chief executive, Ian McAulay, and me as the Member of Parliament. Southern Water agreed to fund a top expert team, led by Doctor Nick Mills and Rob McTaggart, to work out what was possible.

Southern Water agreed to this approach, provided I could convene the other statutory bodies to take part with the same degree of commitment to solve this long-standing problem, and that is what is happening. Six months’ work has led to 12 months’ work, and it is now one of the pathfinder projects, bringing hundreds of thousands of pounds of new investment to Deal—more than £500,000 to date, with more committed expenditure—and bringing in innovation in “slow the flow” work right across the town of Deal. Work is ongoing on technical engineering solutions and environmentally based solutions, which are the so-called nature-based solutions.

We are determined to see the programme through in order to tackle long-standing flooding and be an early adopter of the elimination of sewage outflows. There will be a showcase to Parliament in the autumn, and I very much hope that Ministers and Members who are interested, and who are perhaps speaking in today’s debate, will come and see how we are approaching this.

What matters to our constituents is what works, and what works is technical solutions to technical problems. That has been my experience on the ground, and it is also the expert advice on this issue from the Institution of Civil Engineers. It has advised that the water regulatory framework needs updating, that there needs to be better testing and assessment of the nature-based solutions, and that nature-based solutions need to be better incorporated into the planning system for the built environment.

Who has not been in the room, and who has not been part of the solution? That is either the Environment Agency or Natural England. That matters because these new mega-fines will be imposed by bodies that have no ideas, and no role in solving these issues. The fines will be imposed on water companies, without requiring other relevant and necessary parties to come to the table and work through proper technical and deliverable solutions for the benefit of our communities. The fines could be imposed on water companies that have already agreed an investment strategy to tackle this issue, including the cost to the consumer, and agreed to by their own regulator, Ofwat. There is a clear disconnect in what is being discussed today.

Although one must hope that the agencies will act responsibly, holistically and sensibly, current evidence does not support that. Natural England’s first moratorium on house building was imposed in June 2019. Since then, bans on new builds have spread to more than a quarter of England’s local authority areas, affecting around 145,000 homes across 74 local authority areas, from Cornwall to the Tees Valley, and a further 41,000 fewer homes are expected to be built each year until a solution is found. That solution will not be found in Natural England.

[Damian Green (Ashford) (Con)]

My hon. Friend is right to bring up the problems for house building from the nutrient neutrality programme. Does she agree that the way to solve that problem and reinforce the Government’s welcome efforts to prevent pollution lie within the water industry itself, and with better treatment of sewage, so that we achieve nutrient neutrality without the slightly blunt instrument that Natural England has chosen to use over the past couple of years?

[Mrs Elphicke]

I thank my right hon. Friend for those comments, because he is absolutely right. Blunt instruments will not solve the issues that are blocking house building in our communities, and we have not seen a solution from Natural England that will bring those solutions forward. He is correct to comment on the failure of water companies to invest, which has contributed to this issue, in addition to the root cause of agricultural run-off in river pollution. It is estimated that all existing development—residential, commercial and the rest of the built environment—contributes less than 5% towards the phosphate and nitrate loads in our rivers. That means that occupants of any new homes built would make a negligible difference to that issue, yet it has an enormous cost and impact on the communities where those new homes are not being built.

While those much-needed new homes with their negligible impact are blocked by Natural England, the Environment Agency is allowing farmers to pollute with high-nutrient fertilisers, which are themselves a source of nutrient polluting problems. Planning permissions continue to be granted for high-intensity poultry units, for example, resulting in the absurd situation where a developer may be forced to buy a pig farm and close it down, in order to get permission to build homes, only for the now cash-rich farmer to open another new pig farm just down the road. While the rich farmer gets richer, the small and medium-sized enterprise developer goes bust. A delegation of SME builders brought their case to Downing Street this month. The large developer Redrow has just announced plans to close its offices in the Southern and Thames Valley region, which is one of the areas affected by the nutrient issue.

The Secretary of State is aware that I and many other colleagues are gravely concerned about the proposed approach of keeping Natural England in control, as currently set out in the Levelling-up and Regeneration Bill. That continues to put immense uncontrolled power over the shape and delivery of our homes and communities with an unelected, unaccountable, single-purpose quango in Natural England.