My right hon. Friend raises an excellent point. Reforms are taking place in the Department for Levelling Up, Housing and Communities to look at the plethora of opportunities for speeding up some of those planning processes, with no regression in environmental
protections. He raises the issue of nitrogen and phosphates in our water system. Nutrient neutrality has caused significant delays—in fact, entire blockages—for many house builders across the country. That is exactly why we are coming up with systems to ensure that those developers contribute to environmental processes that improve the reduction of nitrogen and phosphorous in water, and enable those developments to go ahead.
I have talked about the challenge of combined sewers. The options are both intolerable as long-term solutions: either to allow water, including foul water, to back up the system, flooding into people’s homes and businesses—I was flooded, and I agree with other Members that it is an incredibly unpleasant situation to be in—or to discharge sewage into watercourses. Neither of those options is acceptable or tolerable.
In August, the Government published the storm overflows discharge reduction plan, which found that achieving complete elimination could cost up to £600 billion and increase annual water bills by up to £817 by 2049. It would also be, as suggested by the hon. Member for Kilmarnock and Loudoun, highly disruptive and complex to deliver nationwide. Our storm overflow discharge reduction plan will see £56 billion in capital investment by 2050—the largest infrastructure programme in water company history. By 2035, water companies will have to improve all storm overflows discharging into or near every designated bathing water, and improve 75% of overflows discharging into high-priority nature sites. By 2050, that will apply to all remaining storm overflows covered by our targets regardless of their location.
There has been some talk about the Environment Agency being resourced to be able to carry out that role. DEFRA and its agencies received £4.3 billion in the 2021 spending review to do more to tackle climate change and protect our environment for future generations. In terms of the response to Ofwat, Ofwat’s investigations will consider how overall companies operate, manage their sewage treatment works and report on their performance where the investigations can find failings on obligations. Ofwat is responsible for enforcing; it will use its full range of powers accordingly to hold companies to account for their failures, and to require them to put things right in short order.
The subject of sewage also brought to the fore the Thames tideway tunnel, which is a £1.9 billion investment. Once operational and taken together with the other improvements, it will achieve a 95% reduction in the annual volume of untreated waste water entering the tidal Thames.