Over 100,000 homes held up due to defective EU laws will be unblocked between now and 2030, delivering an estimated £18 billion boost to the economy, the government has announced today (29 August 2023).
Currently, legacy EU laws on nutrient neutrality are blocking the delivery of new homes, including cases where planning permission has already been granted. Nutrients entering our rivers are a real problem, but the contribution made by new homes is very small. These laws which originate from Brussels put a block on new homes in certain areas – taking away control over what is built, and when, from local people.
Through an amendment to the Levelling Up and Regeneration Bill, the government will do away with this red tape and allow for the delivery of more than 100,000 new homes desperately needed by local communities. Thanks to the government’s action, it is expected that developers could begin construction on these homes in a matter of months.
The move comes alongside new environmental measures that will tackle pollution at source and restore habitats. This includes significantly expanding investment in and evolving the Nutrient Mitigation Scheme run by Natural England, doubling investment to £280 million to ensure it is sufficient to offset the very small amount of additional nutrient discharge attributable to up to 100,000 homes between now and 2030.
Natural England will work with local authorities, the private sector and others to tackle nutrient pollution and work towards the long-term health and resilience of the river systems. The government intends to work with the house building industry to ensure that larger developers make an appropriate and fair contribution to this scheme over the coming years, and is discussing the right structure and approach with the Home Builders Federation.
The government will then accelerate work on full site restoration through further work on new Protected Site Strategies, which Natural England will draw up in partnership with local communities to set protected sites on the path to recovery in the most affected catchments with the highest housing demand.
Secretary of State for Levelling Up, Housing and Communities, Michael Gove MP said:
We are committed to building the homes this country needs and to enhancing our environment. The way EU rules have been applied has held us back. These changes will provide a multi-billion pound boost for the UK economy and see us build more than 100,000 new homes.
Protecting the environment is paramount which is why the measures we’re announcing today will allow us to go further to protect and restore our precious waterways whilst still building the much-needed homes this country needs.
We will work closely with environmental agencies and councils as we deliver these changes.
Secretary of State for Environment, Food and Rural Affairs, Thérèse Coffey said:
These new plans will cut nutrients and help support England’s precious habitats whilst unlocking the new homes that local communities need.
We are going to tackle the key causes of nutrients at source with over £200 million of funding to reduce run off from agriculture and plans to upgrade waste water treatment works through conventional upgrades, catchment approaches and nature-based solutions.
This builds on the key commitments made in our 5-year strategy – our Environmental Improvement Plan – as well as our Plan for Water which brings forward more investment, stronger regulation and tougher enforcement to protect our rivers.
Alongside the amendments tabled to the Levelling Up and Regeneration Bill, which is currently in the House of Lords, the government has announced a series of new environmental measures to restore our protected sites, including a commitment to offset the very small amount of additional nutrients attributable to up to 100,000 new homes. Beyond the immediate action that will be driven by Natural England’s Nutrient Mitigation Scheme, this package includes:
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Committing to further work on developing Protected Sites Strategies in the catchments most impacted by nutrient neutrality and with the most acute housing pressures. These bespoke plans will help identify specific action needed to restore habitats and species in specific areas. The aim is to agree and implement tangible actions to reduce pollution at source, through nature-based solutions such as wetlands and new innovations.
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Reducing nutrients entering the water from new development with new laws expected to drive significant investment from water companies to upgrade wastewater treatment works to the highest technical standards by 2030. The next water company investment cycle will be among the biggest and most ambitious ever.
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Conducting at least 4,000, inspections on farms each year – making sure that slurry and other sources of nutrients are being handled in a way that minimises pollution of the water environment.
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Reducing nutrient run off into our rivers from farms – supporting our farmers by investing £200 million in grants for improved slurry storage infrastructure and precision spreading equipment. This makes a further £166 million available for new investment into slurry infrastructure.
- Investing £25 million to drive innovation to help farmers manage plant and soil nutrients. This will increase resilience, reduce input costs and improve productivity as part of a more circular economy for nutrients. The effective use of waste has the potential to create new revenue streams. We will also consult this year on modernising our fertiliser product standards to drive increased use of organic and recycled nutrients.
- Introducing from 2024 payment premiums into our environmental land management schemes. This will accelerate take up of certain high priority options, including those that provide benefits for water quality.
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Publishing a River Wye action plan this autumn to tackle the unique issues in Herefordshire.
- Ensuring new homes built do not place undue stress on already stressed local water networks by consulting this year on new requirements where needed for Sustainable Drainage Solutions to reduce pressure on storm overflows from new homes and flood risk.
All of this builds on our Plan for Water, which sets out measures to transform and integrate our water system, address sources of pollution and boost our water supplies through more investment, stronger regulation, and tougher enforcement.
Our nutrient reduction plan will also help deliver on our legal target to reduce nutrient runoff from agriculture by at least 40% by 2038, and by 15% in nutrient neutrality catchments by 2028, and to reduce phosphorus loadings from wastewater by 80% by 2038, and by 50% by 2028.
The government has a strong record on housebuilding, with more than 2.2 million homes delivered since 2010. The Secretary of State for Housing recently set out his long-term plan to go even further and unlock more development across the country.
Changes to nutrient neutrality rules and wider planning reforms will allow the government to go even further towards its target of delivering one million homes this Parliament.
The environmental measures announced today lead on from the government’s Plan for Water published in April which set out actions to address all sources of water pollution, including through accelerating £2.2 billion of water company infrastructure investment to prevent storm overflow discharges and improve drought resilience, and unlimited fines for environmental polluters.
The current EU-derived regulations have required Natural England to issue guidance to 62 local authority areas that new development must be ‘nutrient neutral’ in their area, including Somerset, Norfolk, Teesside, Kent, Wiltshire and the Solent. This has blocked or delayed new development – including around a large number of homes that already have planning permission and local communities have already said they want.
The amendment today will remove this requirement, allowing Natural England greater freedom to develop catchment-specific solutions to the causes of nutrient pollution in partnership with each community, supported by government and private investment.
Additional quotes
Executive Chairman of the Home Builders Federation, Stewart Baseley:
Today’s very welcome announcement has the potential to unlock housing delivery across the country, from Cornwall to the Tees Valley, where housebuilding has been blocked despite wide acknowledgement that occupants of new homes are responsible for only a tiny fraction of the wastewater finding its ways into rivers and streams.
The industry is eager to play its part in delivering mitigation and protecting our waterways. We look forward to engaging with government on the right way to do so, now that ministers are acting upon the arguments that builders both large and small have been making for so long.
With some areas having been blighted for 4 years, the prospect of a swift resolution will be much-needed good news for companies on the verge of going out of business, their employees and for households most affected by housing affordability pressures. Builders will be able to bring forward otherwise stalled investment in communities and get spades in the ground so we need Parliament to get this solution onto the statute book.
David Thomas, CEO Barratt Developments:
As the leading national sustainable housebuilder, we welcome the government’s commitment to tackle the disproportionate rules preventing much-needed and efficient new homes from being built including 2,500 Barratt currently has stalled.
Alongside plans to mitigate the relatively limited impact of new build housing, we welcome the further commitment to tackling nutrient pollution at source in agriculture and industry and the much needed planned improvements in our water infrastructure.
Jennie Daly, CEO of Taylor Wimpey:
We are pleased that the government is proposing to address this important issue and is taking steps to reduce barriers to development. This will help deliver the country’s much needed new homes, which make a significant contribution to the wider economy.
Taylor Wimpey is proud to create thriving new communities and deliver high-quality, energy efficient homes that are built with a clear focus on improving environmental outcomes, fostering community, and helping our customers adopt a more sustainable lifestyle. A great example is our Environment Strategy which commits to cutting our environmental footprint, reducing emissions and waste, conserving precious resources and regenerating the natural environment on our developments.
Colin Wood, CEO, Story Homes:
Story Homes welcome today’s government announcement which is monumental for housebuilding impacted by nutrient neutrality. The plan unlocks over 4,000 homes for our business creating a huge boost for the local economies and supply chains, all whilst facilitating delivery of much needed housing.
Hundreds of jobs in the wider supply chain will be safeguarded as a result. The approach from the government achieves all this whilst delivering significant environmental measures to tackle the nutrient issue at source.
Story Homes directly employ circa 350 people and operate across 3 regions with an average of 26 outlets.
Grayham Tucker, Group Managing Director for Cavanna Homes Ltd:
We fully support the decision to make this targeted change that will unblock housing currently stalled across the country.
For Cavanna Homes, like other SMEs builders, the rules as they stand have threatened the viability of our business, and prevented the construction of much-needed quality, energy-efficient housing in the South West.
Now we need this welcome change to become law as fast as possible so that we can get building.
Cavanna Homes employs over 100 people and is in its centenary year, operating across the South West including Devon, Cornwall, Somerset and Dorset.
Councillor Sam Chapman-Allen, Chairman of the District Councils’ Network said:
Today’s action to tackle the unintended impact of nutrient neutrality rules on local housebuilding is excellent news for district councils. It will unblock tens of thousands of much needed new and affordable homes for more than 40 of our member councils. It is good for local residents and good for local jobs.
The District Councils’ Network has been calling for the government to act to take the burden of cleaning up our rivers away from councils. We are pleased that it has listened and found a solution that includes substantial new funding to address the underlying pollution problem. We call on parliament to pass the legislation that will make this a reality.
