Housing Development Planning: Water Companies

Tim Farron Excerpts

Wednesday 12th March 2025 Westminster Hall

[Helen Morgan]

My hon. Friend is exactly right. Water companies have certain powers to object to developments that exacerbate existing capacity problems, but they are very much constrained by duties under the Water Industry Act 1991, which obliges them to accept domestic flows from new developments. Moreover, developers have an automatic right to connect to the existing network for domestic flows, which limits the ability of the water companies to object solely on the basis of network capacity. They can apply for Grampian conditions—planning conditions attached to a decision notice that prevent the start of the development until off-site works have been completed on land not controlled by the applicant. Developers can do that through the planning authority, but only if there is already a scheme promoted and a date for the improvements to be delivered has been set, so Grampian conditions are rarely used.

My hon. Friend the Member for Westmorland and Lonsdale (Tim Farron) tabled an amendment in Committee to the Water (Special Measures) Bill, which would have provided some of those safeguards by making water companies statutory consultees and ensuring that water infrastructure requirements were considered.

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

I congratulate my hon. Friend on securing this important debate. She mentions the amendment we pushed in the Bill Committee, which was not accepted by the Government. It is indeed vital that water companies are statutory consultees throughout the process, but we should bear in mind that there is an incentive for water companies to say that there is no problem: the additional buildings mean more water bills and more income for the water company. If the company concedes that there is a problem, it may have to respond by making improvements to the infrastructure, costing it money. Do we not need better regulation? Ofwat and the Environment Agency need to be put together into a single, new clean water authority, so that we enforce clean water standards on the water companies that are currently running rings around our regulators.

[Helen Morgan]

I thank my hon. Friend for his intervention. He has campaigned endlessly and consistently on that point and I entirely agree with him. I was concerned when both the Government and the Conservatives voted against his amendment in Committee. Perhaps in their winding-up speeches, they will explain the rationale to my constituents, who are faced with the reality of putting cling film over their toilet every time there is a big storm.

The current requirements, all of which allow consultation, have been inadequate in the example I have given, and indeed in many others. The local plan process requires local authorities to consult the water companies on infrastructure requirements. That should be a positive step; it is how future infrastructure should be determined, with plans made by both the local authority and the water company. However, many councils fail to develop local plans. Shropshire’s Conservative council has just had to withdraw an inadequate plan, having failed to satisfy the requirements of the planning inspectors, leaving the county open to a planning free-for-all in which it is unnecessary to consult water companies. I therefore urge the Minister to ensure that in the review announced at the beginning of this week, water companies are added to the list of statutory consultees. I urge him also to tighten up the rules to prevent such a fiasco from emerging again, when after years of work and of taxpayers’ money being spent on a local plan, it is not fit for purpose and the whole process has to be started again. That is unacceptable for my residents, who are paying their council tax.

Another development 10 miles to the north has had similar issues, but in that case, in addition to concerns about the capacity of the pumping station and existing surface water flooding problems, Severn Trent has refused to adopt the drainage network, citing as its reason that the sewers were not built to the standard agreed under the section 104 arrangement in place. The developer, which I should say disputed that there were defects in the system, requested that Severn Trent return its section 104 bond, and it did. All of that was done without the residents’ knowledge. They only found out nearly three years later, following repeated complaints to the water company, which is tanking sewage away from the village on a weekly basis.