Housing Development Planning: Water Companies

Paul Holmes Excerpts

Wednesday 12th March 2025 Westminster Hall

[Paul Holmes (Hamble Valley) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Lewell-Buck. I congratulate the hon. Member for North Shropshire (Helen Morgan) on her speech on issues that all hon. Members in this House can share concerns about. As MPs, we often get the same casework, and there are issues in my constituency similar to those in hers. This debate is particularly timely. I also congratulate the hon. Member for Taunton and Wellington (Gideon Amos) on some charming revisionism of his party’s record in government. I will tackle comments made by some of the contributors in this debate and then make some general remarks about this Government’s current policy.

The hon. Member for North Shropshire highlighted the genuine hell of her constituents who live in homes that were built many years ago and which are now surrounded by a housing development that has not been properly connected to sewer or drainage systems. That is a particular issue in old villages. In Botley, in my constituency, around 3,000 houses have been built in the Botley-Curbridge corridor. In sections of the Boorley Green development we have a housing estate that cannot be used because the developers did not put in adequate infrastructure. Those houses cannot be sold because backed-up sewage is coming out of the drainage systems. I understand the frustration that the hon. Lady has faced, as a Member of Parliament, in trying to go to the right organisation, and through the right channels of communication, to get those things sorted. I have gone through that and know how challenging it is.

This is genuinely not a criticism of the hon. Lady, but her remarks—and many of the contributions this afternoon —targeted water companies for not doing enough. I agree with those remarks, but there are examples, in my constituency and across the country, where water companies have tried in vain to sound the alert about their frustrations regarding building infrastructure, or to convey their concern about a development. For example, water companies have made it very clear that they are very worried that they have not been listened to in the planning process in connection with One Horton Heath, a large-scale development in my old constituency of Eastleigh, which borders my new constituency. Their concerns about the land that the development is being built on, and where it is to be situated, and their descriptions of the infrastructure that they want provided, have not been heard.

The hon. Member for Chichester (Jess Brown-Fuller) is a local hero in my constituency because she has a history of speaking on issues such as this, although I hope she does not become too much of a hero in the northern villages of my constituency. She will know that our constituencies are sharing infrastructure investment from Southern Water and Portsmouth Water in the water for life scheme. Like her, I have serious concerns about transparency, and some of the plans going forward. She was absolutely right to mention some of the infrastructure that will be built to try and deal with the overall issue that the hon. Member for North Shropshire described, but I remain concerned that this is a lot of money for a short-term project with Southern Water—a company that has shown that, quite frankly, it could not run a bath properly. I deeply share her concern to ensure that it manages the project properly. I hope we can work together to ensure that that project is fully looked at.

My hon. and gallant Friend the Member for Exmouth and Exeter East (David Reed) mentioned a large-scale development in the village of Cranbrook, which is being expanded, where South West Water has not made good on the promise that it made. He made an interesting point about the 1.5 million homes; he is clear that the Government need to be clearer on reform. As we go through the parliamentary stages of the Planning and Infrastructure Bill—the Minister will be delighted that I will be sitting opposite him for many months to come unless the leader says otherwise—I am hoping that the Government will make that reform clearer. My hon. Friend the Member for Exmouth and Exeter East will know that many people have challenged whether the 1.5 million homes are achievable.

As a party, we have always made it clear that home ownership should be made a reality for many hard-working families, and we do generally support the 1.5 million new homes. However, I must stress an essential caveat: the new homes must be the right homes and be delivered in the right places, as I have said to the Minister. Development must be sensitive to local needs, sustainable in its approach, and guided by the voices of the communities that it serves—including water services. This is important in rural communities, where water supply concerns pose significant challenges. Water demand in rural areas fluctuates due to climate change, tourism, and agricultural needs. Despite that, the Government’s new housing targets fail to account for those systemic pressures, leading to a dramatic increase in required housing numbers—106% in New Forest, 199% in North Yorkshire and a staggering 487% in Westmorland and Furness.

Rural voices must be heard, particularly in discussions surrounding water infrastructure and the continued lack of a statutory footing for water companies. To mitigate these challenges, early collaboration between strategic policy-making authorities and water companies is essential. I know the Minister will agree. Last December, the updated national planning policy framework acknowledged this need, continuing the previous Government’s commitment to aligning water infrastructure with development. While water companies are not statutory consultees, and we agree that they should be in the later stages of the process, good practice dictates that their involvement in the planning process should be encouraged from the outset.

Simply put, we cannot afford to ignore the critical role of sustainable water management in housing development. That is why the last Government implemented the “Plan for Water”, focusing on reducing demand, halving leakage rates, developing new infrastructure and ensuring drought resilience. We set clear, legally binding targets, including a 20% reduction in public water supply usage by 2038 and significant cuts to leakage rates. The previous Government’s record is clear. In 2010, only 7% of storm overflows were monitored; under our leadership, we ensured that 100% are now monitored. We fast-tracked £180 million of investment to prevent over 8,000 sewage spills and secured £60 billion from water companies over the next 25 years for the largest infrastructure upgrade in history. However, the Water (Special Measures) Act 2025 does not adequately address the root causes of water pollution. Environmental groups like River Action have criticised the Bill, arguing that “one-off actions” will not resolve systemic pollution issues. The truth is simple: the current system does not ensure that water demand and environmental protection are balanced. There is no real oversight, no accountability, and no sense of urgency to fix the problem.

We also face a major disconnect between planning and water management. Water companies create water resource management plans to project future demand, but these plans do not always account for real-time pressures from new housing developments. Similarly, drainage and wastewater management plans are meant to assess waste water capacity, yet they lack the detail needed to align with local planning. What is worse—as has been outlined by the hon. Member for North Shropshire and many other Liberal Democrat colleagues—water companies are not statutory consultees in the late stages of the planning process when detailed applications go before local authorities. That means that local councils approve new developments without properly assessing whether there is enough water supply or sewage treatment capacity. Under the law, water companies are forced to connect new developments, even when they know they lack the resources to do so sustainably.

Only the Secretary of State can make changes to the list of statutory consultees through secondary legislation. During the passage of the Levelling-up and Regeneration Act 2023, the Government at the time committed to consulting on whether water companies should become statutory consultees on individual planning applications, and if so, how this could be facilitated. Will the Minister outline where we are with that review and whether the evidence is still with his Department? He may not be able to tell us this afternoon, in which case he may write to me and concerned parties. It may be that Members have to propose amendments in the forthcoming Planning and Infrastructure Bill to see that these changes are necessary for water companies.

We call on the Government to publish the review of the statutory consultee system, which I have just mentioned, and look to include the views of water companies on supply and treatment capacity before local authorities grant planning permission. That would enable water companies to input into the planning process effectively and better align investment plans with local development needs.

To conclude, the stakes are clear. We need a housing policy that is ambitious but also realistic. We also need more water infrastructure that is sustainable and resilient. Most importantly, however, we need a Government who listen to local communities, rather than a Government who impose top-down and unachievable targets and remove statutory consultees from the national planning policy framework and other systems. I urge the Government to build upon the solid foundation laid by their predecessors —as they would expect me to say—to deliver on the “Plan for Water” and to ensure that home ownership remains within reach for hard-working families without compromising the integrity of our national resources.