Recommendation 3

Defra and the Environment Agency have been far too slow in planning for the future and this now hinders economic growth. Recommendations this Committee made to Defra five years ago around accelerating the pace of investment have not been acted on, which has proved to be shortsighted. Water companies now need to build 10 new reservoirs, when none have been built in the last 30 years. Meanwhile, supply shortages and failure to increase wastewater treatment capacity are already having a negative impact on housing and business development. The EA has slowed development plans for new homes in key areas including Cambridge and Oxford due to concerns about capacity in water and wastewater systems. Neither Defra nor the EA could tell us how many proposed new homes have been delayed or denied planning permission due to concerns about water or wastewater. We are aware of one major commercial investment in the east of the country whose planning permission was turned down due to insufficient water supplies. Current approaches to finding solutions, such as Defra’s new minister-led taskforce and cross-regulator work to support infrastructure development, are focussed on large infrastructure projects. But housing plans may change more quickly than current planning cycles, or the price review funding cycle, currently allow. recommendation a. The Environment Agency should write to the Committee, alongside the Treasury Minute response to this report, setting out how it will work with water companies to ensure planning solutions are prioritised prior to planning applications, to limit delays to development brought about by objections. 4 b. By the end of 2025, the Environment Agency must be in a position to publish a list of all housing and commercial developments, including a list of the number of homes, that it is delaying or blocking. It should update this list every month. c. The Environment Agency should ensure it is actively monitoring and enforcing compliance with discharge perm