Flood Recovery Framework

Debate between Philip Dunne and Alex Sobel

Wednesday 17th April 2024 Westminster Hall

[Philip Dunne]

My hon. Friend tempts me to conclude my speech before I get to the point about farmers and sustainable farming incentives. There are provisions in the existing support arrangements, post the CAP regime, which will allow for mechanisms to help reduce flood risk.

My hon. Friend referred to the cross-border challenge. He will know that, on the English side of the border, in Shropshire and Herefordshire, there is a developing partnership with the equivalent counties of Powys and Monmouthshire, on the Welsh side, to provide practical schemes to allow them to co-operate across borders, which has been a problem. As we know, the environment is a delegated matter, but the environment, as we also know, does not respect administrative boundaries. The situation is a bit of a nonsense, and the responsible bodies can grapple with it only by working together. That includes the Welsh Government and Welsh local authorities, as well as the UK Government and English local authorities. My hon. Friend is quite right to draw that issue out.

I was going on to talk about the support arrangements for farmers and about the internal drainage boards, which my hon. Friend the Member for North Norfolk (Duncan Baker) referred to. Those support arrangements are managed by the Department for Environment, Food and Rural Affairs. Measures include the welcome introduction of a farming recovery fund, as a swift response to Storm Henk, with its eligibility criteria recently and pragmatically extended.

I should put on record my entry in the Register of Members’ Financial Interests as a partner in a farming business. I am particularly pleased that the Minister for Water and Rural Growth is here to listen and respond to the debate. I know he cares deeply about water management issues, and has throughout his time in Parliament. I hope to suggest some pointers to him regarding the challenges facing farmers with flooded land.

I have just mentioned my entry in the register, and my farm is on the Herefordshire-Shropshire border. Part of it is within the Severn catchment and, as it is on the watershed, part of it is in the River Wye catchment. We have fields that, even this morning, in the middle of April, are still too wet to work. They have yet to dry out sufficiently, having effectively been waterlogged since last autumn. We did not have a specific flood event in the fields through either Babet or Henk, other than at the margins, but the water table has risen to such a level that we have not been able to get machinery on to some of our fields.

Before I turn to the specific farming measures that I would ask the Minister to look at, I would like to touch on the impact on properties, and particularly homes that have been flooded or are at material risk. Like many others in the House, I spent time earlier this year with homeowners, business owners and farmers in my constituency who had had their lives turned upside down by the impact of flooding. Some have been flooded more than once in the past year alone. I sympathise enormously with those who have had to deal with flooding, however it has affected them, having seen the damage and disruption it causes.

I visited one couple in Highley on the banks of the River Severn a couple of days after Storm Henk, who were still only able to access their home wearing waders, because flood waters had reached as high as the door handle on their back door. The heartbreaking devastation of that impact on their home was matched only by the anger and frustration of being told in the days that followed that they might not have been part of a sufficiently serious flood in their area to be able to access financial support, since fewer than 50 property owners had at that time come forward to report internal flooding of their properties across the local authority of Shropshire. That seems an arbitrary threshold. When visiting their premises, it was difficult to explain why the support mechanism did not apply to them, not least because it is at the discretion of the Secretary of State whether to invoke the mechanism at all.

The threshold is determined by local authority boundaries on a map rather than by the river system or catchment that has flooded, and it can take weeks or—as in the case of Storm Henk in Shropshire—months to establish whether the threshold has been reached, given the reluctance of some householders to report a flooding incident for fear of the impact on their subsequent insurability. Flood Re has significantly reduced but not eliminated that issue.

I appreciate that the eligibility criteria for the flood recovery framework is not the responsibility of my hon. Friend the Minister, but I urge him to impress on ministerial colleagues in DLUHC, as they undertake a review of the scheme this year, that they should consider how to improve access to the scheme to make it more fair. It is at present hard to comprehend why access can be denied to someone whose home or business is on the wrong side of the local authority boundary when, just upstream or downstream on the same river, properties affected by the same storm are awarded financial support.

As part of the review, I also urge Ministers to look at the per-property limits for support, as those are likely to leave people subject to multiple floods without further help once their property has reached the upper limit. If a property has changed hands between floods, the new owners might not be eligible for support even if their property has been flooded.

My second point concerns the administrative burden of implementing support under the flood recovery framework, which falls on local authorities. Everyone in this House is aware of the pressures that councils are already under, with limited resources for flood and water management. When a flood occurs, the community bands together incredibly quickly to support each other. I pay tribute to the efforts of local volunteers, flood action groups and local councillors who do so much to help when flood warnings are issued. Support from the local authority to help with prevention and then clean-up remains vital.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

The right hon. Member, the Chair of the Environmental Audit Committee, is making a great speech in a really important debate. On Boxing day 2015, we had the greatest flooding event in a century in Leeds on the River Aire catchment. All council members—I was a member of the council at the time—went to help the clean-up operation. Since then, the West Yorkshire flood risk partnership has created a new partnership between the local authority and local businesses. Local businesses are supporting, for instance, tree planting in the Upper Aire catchment and have been a full partner in the flood alleviation scheme on the River Aire. Such partnerships can help prevent future flooding and also come together when a flooding event happens to ensure domestic and business recovery.

[Philip Dunne]

I am grateful to my hon. Friend—I will call him my hon. Friend because we have worked together on the Environmental Audit Committee for some years—for making that point. He perhaps was not in the room when we talked about a similar partnership that exists in the River Severn catchment. He is absolutely right that when a flood event happens there is a sense of community spirit that comes together and acts—it is unfortunate that it should need to do so—as a mechanism to drive those who want to try to do something about it to form flood action groups, which have been a very successful community-led initiative across the country and are well supported at a national level by the flood action group and the Environment Agency. Those are good examples. My hon Friend the Member for North Norfolk referenced what should happen in Norfolk; he might like to look at the York experience as well.

On the burden on local authorities, Shropshire Council has one and a half full-time equivalent members of staff to deal with flooding issues and they do a great job. But asking them to take on the additional work of helping more than 50 households deal with the impact of flooding, and the significant work needed to act quickly to remedy flood damage or prevent recurrence, places a considerable burden on the team. That inevitably takes immediate priority over their long-term work to create lasting flood prevention schemes in their locality. They cannot do both tasks at once. I therefore urge the Minister to look at including provision within the flood recovery framework to award a revenue funding amount—perhaps as little as £50,000 to £100,000 per managing entity, which at the moment would be the local authority —to enable it to recruit suitable resource to help staff the activation and deployment of funds under the scheme, so that this time-critical support can be provided to those who properly need it.

I turn to flooded farms, for which the Minister does have some responsibility. The farming recovery fund has been a useful means of support to farmers in those counties declared eligible, but, as the Minister knows, that does not apply to Shropshire, despite it being in the same river catchment as Gloucestershire and Worcestershire, which are eligible.

I must tell the Minister that in a meeting with farmers and National Farmers Union representatives in south Shropshire last week, it was made clear to me that many farmers in Shropshire were affected by Storm Henk, and many more have been affected by the volume and duration of rainfall we have had since Storm Babet last October, yet they remain ineligible for the farming recovery fund. That is hard to fathom given that there are waterlogged farms across the county. I appreciate that the scheme applies to all land parcels that are flooded contiguous to a river that had notably high river level gauge readings during the 10 days following Storm Henk in January, provided that they registered under the rural payments service.

Payments of between £500 and £25,000 will have been a much-needed lifeline after the impact of the storm, compounded by the wettest March in over 40 years. Many colleagues raised similar concerns about the initially narrow scope of the support for farmers affected by flooding, and I commend the Minister for acting quickly to remove the limit—land had to be 150 metres from the centre of eligible rivers—so that all land flooded was covered as long as it was contiguous to an eligible river, as the NFU and others had called for.

I hope that today the Minister will be able to address whether further steps can be made and whether he would be prepared, in parallel to DLUHC’s review of its flood support measures, to encourage DEFRA officials to undertake a review of the criteria for support for farming businesses, so that badly affected counties, including Shropshire, will not miss out in future.

I encourage the Minister to speak to officials and ask them to take a holistic approach to the way in which farmers are encouraged through the sustainable farming incentive, as touched on by my hon. Friend the Member for Shrewsbury and Atcham, to undertake work to alleviate flood risk downstream; I am thinking of the various measures to slow the flow in upland areas to create wetlands and the like. Yet when land becomes flooded from major events or waterlogged through persistent rain so that it is less usable to grow food, the support mechanism may not be there to access.

I also hope the Minister might listen to calls from the NFU and others to change the way in which farming support becomes available. For example, there is some confusion during exceptionally wet weather, when many acres of farmland may be flooded without 50 properties suffering the same fate, whether farmers apply through the flood recovery framework if their home or business premises are flooded or the farming recovery fund if the impact is on flood water on farmland. Are they, or should they, be eligible for both schemes? Because the scheme is new, it is not crystal clear where they should go. Providing a means of aligning the different schemes or understanding in what circumstances which scheme applies would be extremely helpful to everybody.

Given the recent wet weather and, as I have explained, that the water table rises, farmland can flood in the absence of significant named storms. I ask the Minister whether his Department would review, alongside the review undertaken by DLUHC, the workings of the flood support schemes that apply to flooded farmland.

There has rightly been a refocus on food security recently, given the threats we face in a volatile world. I know my farm will have lower yields this year as a result of the planting conditions this winter. I suspect the same will apply in many areas of the country. We will therefore see either a reduction in available home produce or an increase in prices—or both. That will be in large part down to the impact of weather conditions, for which I can readily see the Minister is not responsible. Finding mechanisms, however, to ensure that farmers are there to plant next year and are there for future years to produce the food on which we all rely is really important. I urge the Minister to take the opportunity to support farmers in these challenging times, just as we ask our farmers to support our country in times of uncertainty.

Ofwat: Strategic Priorities

Debate between Philip Dunne and Alex Sobel

Thursday 9th June 2022 Commons Chamber

[Alex Sobel (Leeds North West) (Lab/Co-op)]

I sincerely thank the right hon. Member for Ludlow (Philip Dunne) for all the work that he has done on this issue. He has done so as Chair of the Environmental Audit Committee, on which I, too, served, spending much of my early years here with him on the Committee—in fact, today marks the fifth anniversary since I was elected—through his private Member’s Bill and through his significant campaigning on issues of sewage. He opened the debate in his typically stylish way.

I thank the Backbench Business Committee for granting this debate—a Committee on which I also served as a Back Bencher. I know the vital role that it plays in allowing important subjects to be aired in the House. I also thank all the Members who have taken part in this last piece of parliamentary business this week.

We have had a broad range of excellent contributions. The hon. Member for Broxbourne (Sir Charles Walker) is a doughty defender of anglers and the need for clean water for angling. He will be pleased to hear that I have met the Angling Trust. My hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard), whom I was with in Plymouth just last week, called for greater accountability on the SPS and the need for more powers at Ofwat, and his points were well made. He is right about the lack of a clear plan for decarbonisation and nature restoration, and I commend him on his ambitious campaign to get Devil’s Point designated an official bathing water spot. Maybe one day I will be able to bathe in it with him. [Interruption.] In wetsuits—I hope people will not read too much into that.

The hon. Member for Kensington (Felicity Buchan) made an important contribution on flooding, which, due to climate change, will be ever more frequent unless more action is taken, especially on upland catchments. My hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury) gave an account of Mogden sewage treatment works discharging into the Duke of Northumberland’s river—one of too many such horrific events.

The hon. Member for Southend West (Anna Firth) made a good point about the need to ban wet wipes. We already had a Bill that my hon. Friend the Member for Putney (Fleur Anderson) attempted to get through the House, and hopefully we will see it come back to this place again. The hon. Member for Devizes (Danny Kruger) made a good point about nature-based solutions; I saw a similar project to the one he described on a reed bed in Norfolk by Anglian Water and Norfolk Rivers Trust, and we need to see many more of them. The hon. Member for Wantage (David Johnston) made a good point about new housing creating huge strain on the infrastructure dealing with sewage.

The fact is that our rivers are dirty. They have been dirty for too long, and they have got dirtier. Beyond a shadow of a doubt, we need them cleaned up. The Victorian sewage system was implemented because the Thames had become so toxic that the Prime Minister of the time, Benjamin Disraeli, could no longer stand to be in the Chamber during the “Great Stink” of 1858. He said the Thames had become,

“a Stygian pool, reeking with ineffable and intolerable horrors”.

Outside Parliament now, the heirs of Bazalgette are creating the super sewer, which will reduce sewage overflow into the Thames in central and east London—although not in west London past Hammersmith, a point my hon. Friend the Member for Brentford and Isleworth made. However, it is the only such project in the UK. When the House passed a motion declaring an environment and climate emergency three years ago, that should have challenged the water industry and the Government to undertake radical change. We can no longer accept being the dirty man of Europe.

It is fair to say that the Government have started to move on this, although they have been brought to it reluctantly, and in no small part due to campaigning of the right hon. Member for Ludlow and the screeching public outrage when Conservative MPs were whipped to vote against an amendment calling for the end of raw sewage discharges. We need more power in the hands of consumers so that they can understand what is happening in their communities.

Let us recap the water industry numbers so that we can see where there is space in the system for solutions. The water companies in England collectively invested £1 billion less in real terms last year than they did in 1991. In the past 11 years they have added £19 billion in dividends to shareholders. That is the financial leakage.

Then there is the water leakage, with 229,000 litres in 2021 and, as we know, hundreds of thousands of sewage dumping events. In 2020, there were just shy of 400,000. In the same year, the average household in England saw £62 of their bills go as dividend. The hon. Member for St Albans (Daisy Cooper) made a good point about water company bosses receiving bonuses while those dumping events take place.

[Philip Dunne]

The hon. Gentleman is making an impressive speech and I am grateful for his kind comments about our serving on the Committee together. On the matter of dividend payments, is he aware that many of the water companies’ capital structures mean that payments made as interest on the significant loans they take out to invest in their businesses are structured by way of dividend payments to inter-company subsidiaries and accounts? Therefore, the gross amount of dividends does not actually reflect dividend payments to equity shareholders, but includes interest payments.

[Alex Sobel]

I think the figure I quoted was just dividends to shareholders, but I will check on that. I understand the point the right hon. Gentleman makes. We need to de-duplicate that data.

The Rivers Trust has a brilliant website with an interactive map that allows people to zoom in on where they live and see where raw sewage is being discharged. It is disturbing to see how close to many of our communities this discharge is taking place—even directly on to children’s playing fields. We need a plan for raw sewage discharges that considers not only storm overflows, but a creaking sewage system. There is routine discharge of raw sewage into rivers and seas, not in the event of extreme weather from combined sewer overflows but as a result of daily discharges. The fines levied against companies include the £90 million fine for Southern Water, but we are still seeing discharges by Southern Water—for instance, in Whitstable, affecting the fishing and tourism industries. This just shows that the system is not working. I agree with comments by Members on both sides of the House about delays in prosecution. Ministers need to make sure that the Environment Agency puts real emphasis on bringing further prosecutions. The level of fines is not yet producing a change in behaviour in water companies and stopping raw sewage being routinely discharged. The word “routinely” really matters, because it means that it happens every single day. While we have been debating, the water companies have been routinely discharging raw sewage, not because of extreme weather in the past hour but because of a sewerage system that cannot cope with the level of demand being placed on it and the lack of investment in it. I will resist the temptation to slip into a speech on sustainable urban drainage, which we can pick up on another time.

The Environment Act 2021 sets out changes to the way that raw sewage will be reported on and the need for plans. It did not set out a timetable for when the scandal of raw sewage discharge would be brought to an end, nor did it set out any interim targets. The Ofwat strategic priorities also fail to give that clear direction. We need to delve into the workings of the water industry. That will influence the changes for water companies in the next pricing period, but what changes are happening right now? They know that they do not have to invest in the same way until the next pricing period, because Ofwat sets the pricing controls and the investment strategies. Although many water companies fell foul of the business plans in this period, I doubt that we will see a huge surge in action to close raw sewage outfalls and investment in the treatment period until the next price period. The challenge is what we do about it now, and that really matters. What we discharge into our rivers is not always easily seen. We need a clear plan to understand how much will be stopped, how much will be properly treated, and how much will be carefully looked after in future. Water companies discharged raw sewage into England’s rivers 372,533 times last year—a slight reduction on the previous year. Taking the past three years together, raw sewage was discharged over 1 million times for a duration of over 8 million hours.

The Government’s storm overflows discharge plan has been rightly criticised for its lack of urgency. Mark Lloyd, the chief executive officer of the Rivers Trust, said:

“I’m disappointed that this plan lacks the urgency we so desperately need. This plan is going to need strong input from civil society and NGOs like The Rivers Trust if it is going to outpace the twinned climate and nature crises we’re currently facing. We want to have rivers where people and wildlife can thrive, but the target timelines in the plan are far too slow—I want to see this in my lifetime!”

I do not know how old the CEO is, but that is probably a considerable length of time.

Data released by the EA show that the 10 water companies covering England were releasing raw sewage into waterways for hundreds of thousands of hours in 2021. The 372,533 spills were recorded only on those overflows where event duration monitors were in place—just 89%, so the actual figure is considerably higher. More than 60 discharges a year from an overflow is considered too high and should trigger an investigation. On average, 14% of discharges from the 10 water companies passed that limit. In one event last year, 8.7 million gallons of raw sewage discharged into the River Calder above Wakefield, and the fine was just £7,000. Water companies in England are under investigation by the regulator—Ofwat—and the EA after they admitted that they may have illegally released untreated sewage into rivers and waterways. The investigation will involve more than 2,200 sewage treatment works, but any company found breaching its legal permit is liable to enforcement action, including fines or prosecutions. Fines can now be up to up to 10% annual turnover in civil cases or unlimited in criminal proceedings, and I welcome that.

The SPS states that Ofwat should

“enhance the quality of the water environment”.

However, last autumn, beaches around the Tees estuary and along the coast in North Yorkshire saw a huge rise in dead and dying crabs and lobsters. Dogs were also found to be falling ill after being walked on the beaches. In January, the Government launched what they called an “investigation”. In February, they put out a press release announcing that the mass death of sea creatures and the dog illnesses were caused by an algal bloom. The Minister and I have an association going right back to when I first got elected, and one thing I learned from her is that it is always good to be appropriately dressed for debates, which is why I have worn this tie today. I notice that she is dressed in a very algal-bloom green, so I am not sure whether she is going to refer to this issue in her closing remarks. The Government claimed that there had been a rapid increase in the population of algae that can release toxins into the water and affect other wildlife, but no data or evidence was published.

An algal bloom occurring in October or in February ranges from unlikely to impossible, as blooms require high temperatures and clear water, and the sea off Northumbria and the Tees is cold and turgid. Also, no bloom was noticed by the local fishing community, so they and anglers commissioned an independent investigation by a marine pollution consultant, Tim Deere-Jones. Using freedom of information requests, he found that the Government had based their judgment that it was algal bloom on only satellite data. More astonishing, he also found that levels of pyridine, a toxic pollutant, in crabs caught in the north-east and tested by the Government was 74 times higher than in crabs caught in Cornwall. Will the Minister now bring together agencies including Ofwat and the Environment Agency, as well her own Department, to get to the truth of the matter?

The strategic policy statement is not just about protecting the environment and the stability of the industry; it is also about protecting consumers. The Government claim that their No. 1 priority is the cost of living crisis, but social tariffs are a postcode lottery, with no consistency between companies in the financial support offered to consumers and no legal minimum. The Government have not even imposed a statutory duty on water companies to provide that support or on Ofwat to require it. The Government have set the weakest possible framework. Average water bills rose by 1.7 % to £419 in April 2022, but there is significant regional variation, with the average bill rising by 10.8% in one water company area. People are struggling, and for many households a water bill can be the straw that breaks the camel’s back.