Water Scarcity

Edward Morello Excerpts

Tuesday 9th December 2025 Westminster Hall

[John Milne (Horsham) (LD)]

I beg to move,

That this House has considered water scarcity. 

It is a pleasure to serve under your chairmanship, Mr Stuart. In a country where we always complain about the rain, we have somehow contrived to have a water shortage. I am reminded of the words of the poet Samuel Taylor Coleridge:

“Water, water, everywhere

But not a drop to drink”

But the honest truth is that it really does not rain like it used to. This year, the UK experienced the hottest and driest spring on record. Farmers endured a devastatingly poor harvest and lost £800 million to drought. Over the long term, the prediction is for ever greater weather volatility. In October—yes, October—my home county of Sussex was placed under drought measures, as Ardingly reservoir fell below 30% capacity, compared with the seasonal average of 76%, and there are greater challenges to come.

By 2050, the UK population is forecast to rise by 10 million. Further demand from data centres, renewable energy infrastructure and new industry is also rising quickly, but is yet to be factored in to demand. The National Infrastructure Commission projects a national supply-demand deficit approaching 5 billion litres a day by 2050 unless action is taken. That is a gap equivalent to the daily water use of more than 30 million people, and that does not even include commercial demands, such as farming, manufacturing, horticulture or business activity.

For something that has become so precious, we are remarkably careless about it. Fully one fifth of the water that enters the system is lost before it reaches even a single property because of leaky pipes. River abstraction now accounts for 61% of all environmental water abstraction, up from around 40% in the early 2000s. This is clearly contributing to severe pressure on our waterways, especially chalk streams, one of Britain’s most unique ecosystems.

[Edward Morello (West Dorset) (LD)]

My hon. Friend talks about water abstraction and using water in the right places. The Independent Water Commission’s recommendation 10 suggested using pre-pipe solutions. Does he agree that mandatory rainwater harvesting on new homes and major renovations would allow us to capture water and use it at source, reducing pressure on reservoirs and the need for river abstraction?

[John Milne]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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