
Rayner's housing target at risk from crumbling water system
Britain's crumbling water system has left Angela Rayner at risk of missing her own housebuilding targets as sewage networks struggle to cope with new developments.
Utility companies and local councils have put the Housing Secretary's ambitions in jeopardy as they struggle to connect new homes to creaking waste water infrastructure.
James Stevens, a director at the Home Builders Federation, said there is 'increasingly this question being raised by some councils and some water companies over whether they can provide the water infrastructure necessary to meet the Government's housing targets'.
In a letter to Matthew Pennycook, the housing minister, the Home Builders Federation warned the situation left housebuilding plans 'at significant risk', adding: 'Confidence in the planning system will continue to erode, threatening future investment in land and subsequent housing supply.'
Ms Rayner said the UK must build 370,000 homes each year, with the Government aiming to complete 1.5m homes by the end of the parliament.
But water companies, which have a statutory duty to provide a connection for customers, have indicated they could delay developments with objections over the scale of sewage work required.
Anglian Water, which operates in the East of England, advised developers that it may object to several housing schemes until additional sewage capacity has been constructed.
A spokesman said: 'In order to ensure we're protecting the environment, we do need to take into account the capacity we have available in growing areas.
'In locations where additional homes would exceed existing capacity and be a risk to the environment, we may put an objection or condition to the planning application.'
Troubled operator Thames Water is objecting to new connections requested by Welwyn Hatfield borough council. The local authority has a target of constructing 834 homes each year.
However, councils have also opposed schemes over concerns about the scale of sewage connections.
Wealden Council denied planning permission for several residential schemes citing concerns about water capacity. This was despite reassurances by Southern Water that it can supply new developments in the area.
The local authority in East Sussex has delayed at least six housing developments over water supply concerns, totalling 819 homes. Wealden Council has a house building target of just over 1,400 homes a year.
The delays to residential schemes by the council come despite national planning policy stating that local planning authorities should not use sewage and water capacity concerns as a reason to block residential schemes.
Wealden district council spokesman said: 'It is our responsibility to ensure that these developments do not result in sewage spills into our environment or our communities.'
The authority in charge of house building in Cambridge City, which has a combined housing target with South Cambridgeshire of 2,309 new homes per year, said it had put 'significant focus' on resolving issues over sewage connections.
Greater Cambridge Shared Planning said that planning decisions 'can progress with the confidence that both water supply and treatment capacity is available to meet the needs of the area'.
The Government is currently carrying out a review into the water companies and their regulators which is due to be completed in June.
A government spokesman said: 'We are clear that all areas must play their part and help to deliver 1.5m homes as part of our Plan for Change.
'Development should not be blocked if the right water infrastructure is in place, and we expect councils and water companies to work together to ensure this is the case so we can turn the tide on the housing crisis we have inherited.'
A Thames Water spokesman said: 'We look at each development case by case and where needed will request that conditions are added to planning applications, so for example new homes are not occupied until the necessary upgrades to our water infrastructure have taken place.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Daily Mail
28 minutes ago
- Daily Mail
Folly of funny money deals: A market solution would be best for Thames Water, says ALEX BRUMMER
As a long-standing critic of private equity pillage, I should be cheering from the rooftops at the decision by KKR to pull out of its proposed rescue of Thames Water. Yet given the ghastly legacy of financial ownership and the hopelessness of the Starmer Government on commercial decisions, KKR almost looked like a white knight. The pledge by the global investment firm to inject £4billion of equity to stabilise the balance sheet of Britain's biggest water utility, and to return the company to the stock exchange in ten years, was as good an option as this ill-fated company was likely to receive. For KKR to get the deal done it required various forces to be aligned. The management of Thames, the existing creditors, the regulator Ofwat, the Government and the political background. Each time a pact with one party looked attainable, another problem arose. Down the decades, KKR deservedly has taken political punishment for its alleged profiteering at the expense of shareholders, customers, and other stakeholders. The original 'Barbarians at the Gate', dating from its deal for RJR Nabisco back in 1988, it has a history of plunder. Its ownership of Toys R Us ended in the bankruptcy courts. In more recent times, the Wall Street group has focused on long-term investment through infrastructure. This was the mechanism proposed by Thames Water. When the proposition was put to KKR's global investment committee by its British and European principals, it received the thumbs down. Fear of the opprobrium, which came recently from the Commons when MPs tore into potential bonus arrangements and sewage discharges, played a role in the decision to pull out. It was serendipity that KKR's decision emerged on the day that former Bank of England deputy-governor Sir Jon Cunliffe produced his report on the water industry. He found 'deep-rooted systemic' problems and argued for a 'fundamental reset'. Of all the regulators designed to patrol key utilities post privatisation, Ofwat has been the most useless. None of the water utilities deserve credit for their record on keeping the nation's beaches and waterways free of sewage and industrial waste. There are clear differences between the performance of providers such as United Utilities and Severn Trent, which have remained listed companies, and those which were sold to rapacious financiers. Thames and Southern Water are the most notorious examples. In both cases, equity finance was largely replaced by leverage, borrowing and debts, and the lifeblood was sucked out of the enterprises by interest payments and dividends. These often were paid to entities in offshore tax havens. Putting water to one side for a moment, that is what is so frustrating about the recent sale of the Royal Mail-owner International Distribution Services to a financial buyer, Daniel Kretinsky. The only hope for that deal is Ofcom, which has a far better reputation as a regulator. Nevertheless, one suspects the Universal Service Obligation, and a reasonably priced first-class post, are not the priorities of the buyer. The Labour Government was played by Kretinsky in much the same way as it was forced into an expensive rescue of Chinese-owned British Steel. Any notion that Thames Water would be better run as a nationalised industry needs to be disabused. It took 17 years for the Treasury to free itself from ownership of NatWest. A market solution must be the best approach. Otherwise, a bloated government balance sheet will be burdened with this spoilt asset for decades. Red card The love affair of US entrepreneurs, private equity and showbiz for Premier League football is not simply admiration for the beautiful game. The American tax code allows owners of professional teams to write off the entire value of players as 'intangible assets' against tax. If the House of Representatives' tax plan eventually receives assent, future owners (who are taxed on worldwide income) will lose this advantage. The impact on the value of sports franchises, on both sides of the Atlantic, could potentially be catastrophic.


Daily Mail
28 minutes ago
- Daily Mail
Cartier, Victoria's Secret and North Face become the latest retailers to be hacked
Cartier, Victoria's Secret and North Face have become the latest retailers to be hacked. The revelations follow attacks on firms including Marks & Spencer, the Co-op, Harrods and Dior in recent weeks. Jewellery and watch maker Cartier told customers that 'an unauthorised party gained temporary access' to its system and 'obtained limited client information'. No passwords, credit card details or bank information were compromised in the attack. North Face emailed some customers saying it discovered a 'small-scale' attack in April this year. Lingerie maker Victoria's Secret said a security incident relating to its IT systems led it to shut its website for a few days last week.


Daily Mail
29 minutes ago
- Daily Mail
Global economy set for slowest growth since Covid as Trump's trade wars take their toll
The world economy is on course for the slowest growth since the pandemic as Donald Trump's trade wars take their toll, the OECD warned yesterday. The latest forecast from the Paris-based Organisation for Economic Cooperation and Development pointed to growth of just 2.9 per cent this year and next. And Bank of England governor Andrew Bailey gave his strongest comments yet on the impact of Trump's tariff war on global trade, saying it had been 'blown up'. The impact of the disruption was laid bare in separate figures showing China's manufacturing centre went into reverse last month as US tariffs bite. The OECD's forecast for a slowdown would mean world growth falling below 3 per cent for the first time since 2020 – when Covid lockdowns sent business activity into reverse. Back in March it had predicted 3.1 per cent growth in 2025 and 3 per cent in 2026. The US, the world's biggest economy, saw a dramatic downgrade from 2.2 per cent to 1.6 per cent for this year. Britain is expected to grow by 1.3 per cent, down from 1.4 per cent. OECD secretary-general Mathias Cormann said: 'The global economy has shifted from a period of resilient growth and declining inflation to a more uncertain path. Today's policy uncertainty is weakening trade and investment, diminishing consumer and business confidence and curbing growth prospects.' Trump introduced swingeing tariffs on trading partners on 'Liberation Day' at the start of April – before he was forced into a 90-day pause when markets sold off sharply. Separate tariffs have also been introduced covering the likes of steel and cars. UK businesses continue to suffer despite a much-vaunted deal between Britain and the United States – which was announced nearly a month ago but has yet to take effect. It means that a decision by Trump to hike additional tariffs on steel from 25 per cent to 50 per cent will hit British industry despite the promise of relief. Yesterday, Bank governor Bailey highlighted in stark terms the damaging impact that the disarray would have on investment decisions and broader global growth. He told the Commons Treasury select committee: 'The overall picture on trade now, I'm afraid, is one where the rules-based system is dead. 'Over a long time we built up a pattern of world trade agreements which led to a lowering of tariffs. 'I'm afraid that system has now really been blown up to a considerable degree, let's be honest, by all of this. That has very serious consequences for the world economy.'