Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Acknowledged
Defra and EA lack data on housing projects stalled by water system constraints
Conclusion
Defra and the EA could not tell us how many proposed new homes are not being built because of water system constraints.40 Defra told us that it has set up a minister-led taskforce for high-profile infrastructure projects, working to ensure they can be built quickly.41 We explored with witnesses how quickly schemes could be planned for and funded. The EA told us that it had to be realistic about sudden changes in housing ambition, given the timeline of the planning process for water resources. Ofwat told us that it takes account of plans when it agrees funding in the price review and that the current price review was finalised.42 Funding is now set until 2030. The threshold for re-opening a price review to reflect additional costs is high, at 10% of the company’s annual turnover.43 36 Q 50 37 Q 17 38 Qq 50-52 39 Qq 50, 53 40 Qq 52-53 41 Qq 36, 50, 74 42 Qq 51, 101 43 C&AG’s Report, paras 1.9, 2.25 13 2 Regulating water companies’ operational and financial performance Environmental performance of the water sector
Government Response Summary
Defra, the EA, and Ofwat are working together to ensure that water resources are taken into account in planning decisions and a minister-led taskforce has been set up for high-profile infrastructure projects.
Government Response
Acknowledged
HM Government
Acknowledged
The Government is working to ensure that new homes and businesses have access to a reliable water supply. Defra, the EA, and Ofwat are working together to ensure that water resources are taken into account in planning decisions. The Government has also set up a minister-led taskforce for high-profile infrastructure projects, working to ensure they can be built quickly. The Government is committed to working with local authorities and water companies to ensure that new homes and businesses have access to a reliable water supply.