Summer Drought: Future Supply Disruption

My Lords, this year’s drought follows exceptionally dry weather, record-breaking heatwaves and sustained high demand for water. Climate change presents increased risk of more frequent dry summers, and we take drought preparedness very seriously. In response, we have increased engagement with the water sector and key stakeholders, including through hosting more frequent National Drought Group meetings. Our response to the Environment and Climate Change Committee’s drought preparedness inquiry also demonstrates our commitment to improving drought preparedness for the country.

I thank my noble friend for her Answer. She referred to this summer’s drought, but that followed a particularly wet winter, with southern England seeing 58% more rain than usual. Despite that, most regions have still faced hosepipe bans and other significant restrictions this summer. It is clear that we have insufficient reservoir capacity. What can the Government and water companies do to ensure that we build the necessary additional reservoir capacity now and not at some point in the distant future?

I am sure noble Lords are aware that the Government have pledged to build nine new large reservoirs to ensure sufficient water supply for the future. At the same time, we need to protect and enhance the environment and we are looking at how best to do that. We changed some of the planning rules to enable this to happen more quickly. At the moment, we are looking at how we co-ordinate the delivery programme. We have the Water Delivery Taskforce, which is bringing together officials from Defra, the Environment Agency, Natural England and other government departments as necessary to make sure that we have a good, co-ordinated delivery plan. The current timelines are that the reservoirs would come into service from 2035 and in 2031 Havant Thicket would become the first large water supply reservoir completed in 30 years.

My Lords, I welcome the response to the Environment and Climate Change Committee’s Surviving Drought report to which the Minister referred, but she will be aware of the impact on farming, the horticultural sector and the fruit and vegetable sector that this year’s drought has caused. There is a very strong case for small on-farm reservoirs, and this needs to be dealt with urgently. We cannot wait another 10 years for these major reservoirs, for which there is a need, to be built. Please will she authorise her department to proceed with these small, much-needed on-farm reservoirs?

I have said previously to noble Lords that enabling farmers to hold more water and manage water better on their land is something that the Government are very keen to see and enable. We are also very aware of the huge problems that drought causes farming. We have been looking at how we can support farmers facing lower crop yields, for example. There are also increased feed costs and irrigation issues. I have held meetings with the poultry sector, for example, specifically on the problems of heat stress on poultry. It is something we are very keen to resolve because this will be a long-term problem.

My Lords, does the Minister think it sends the right signal that failing water companies which are currently losing 3 billion litres a day in leakage can find £75 million for an ad campaign to tell households to use less water, while government support for farmers hit by this summer’s drought was £65 million? Can she tell us whether that farmer support package will be in any way increased?

We are currently working with farmers to look at what support they need, not just in this area but in other areas because farmers are under pressure in many different areas. I agree with the noble Baroness about the issues around the water companies, which is why I hope to be bringing the new water Bill to this House shortly.

Can I suggest to the Minister that in addition to what has been suggested there should be a campaign to encourage people who have any sort of land to start saving water on it? For instance, I am thinking of whether I can put down a borehole—I have only 16 acres. Things such as that might be helpful if the Government could push people to see what they could do to save water themselves.

One important thing we need to be doing is not necessarily asking people to drop boreholes on their land but water saving more broadly. It is something we could definitely improve on as a country. The Government are keen for water companies to look at how they encourage more water saving across all their customers.

My Lords, in the past few weeks the Prime Minister has been talking about public control of water companies. What we have had since privatisation has been a disaster. Yesterday he actually mentioned public ownership. Does that mean renationalisation in other words? By the way, Havant Thicket is a disaster and I would be very happy to meet the Minister to explain exactly why and bring some campaigners as well. I save water in water butts.

I would be very happy to meet the noble Baroness. She may be better off meeting the Water Minister, to be honest, but I am always happy to meet her. She raises important points, but we have to get this right. On public ownership, my understanding is that that same report stressed that public ownership was not the same as nationalisation. I need to understand better what the different options are.

My Lords, it is obvious that we need more investment in reservoirs but the easier, cheaper and quicker improvement is to restore natural water storage through rewetting, riparian tree planting, de-canalising rivers and, as my noble friend mentioned, creating on-farm water storage. What are the Government doing through ELMS and freeing water companies to invest to incentivise these improvements in resilience? I refer the House to my registered interest as a farmer and landowner.

Within Defra we have a number of programmes to do with rewetting, tree planting and supporting farmers—we have talked about reservoirs for farmers—but also holding water better. We can look at balancing ponds, for example, which the Government have been supporting through the different river trusts. There is a lot of work going on there. The important thing is to make sure that it is co-ordinated and happening in the right place.

Over the last few days, the Secretary-General of the United Nations, António Guterres, has indicated that the world is facing an exceptional El Niño impact that will have a direct effect on food production and food security, notwithstanding on communities. I urge my noble friend the Minister to have immediate conversations with her ministerial colleagues in Defra and other departments to see how the UK could be battle ready to deal with this phenomenon that could impact on all our lives, particularly in our farming communities.

We must all be aware of the reports about the excessive El Niño we are experiencing at the moment. I am sure that this winter is going to be very difficult for many parts of the world. In this country, the National Drought Group is meeting weekly. We have the working group on flooding as well. We are looking at long-term water resources management plans to ensure sustainable water supply. The Environment Agency is reviewing all the plans in this area because we need to make sure that long term we are prepared for drought, flooding and storms, all of which cause serious disruption to water supplies, electricity supplies and so on. There is co-ordinated work across government so that when we have these serious concerns about existing and future weather, we are better prepared than we have been before.

My Lords, reducing consumption and leakage is expected to meet more than 65% of England’s projected water shortfall. Will the Government make executive bonuses and dividends, and future bill increases, conditional on companies meeting binding water leakage reduction targets and preventing supply interruptions?

Water companies already have leakage targets, which they are expected to meet. I say from a personal point of view that United Utilities seems to be going like the clappers at the moment—virtually every road around our village is shut as it beavers away mending leaks. Perhaps the issues around water shortages this summer have focused water companies’ minds a bit more on the need to ramp up that work.