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Jun 14, 2023

'A farce': Inside chaotic announcement of Tory housing policy to rip up water pollution laws

The handling of a major Tory housing policy announcement to rip up environment laws around river pollution in order to build more homes has been branded “cack-handed” and a “farce” by developers.

The handling of a major Tory housing policy announcement to rip up environment laws around river pollution in order to build more homes has been branded “cack-handed” and a “farce” by developers.

Industry sources fear changes to housebuilding laws in England to stop environmental legislation blocking developments could fail because a poorly handled announcement has already triggered a major backlash from green groups.

Housing industry insiders told i that the Government’s apparent failure to warn environmental groups about the new policy had only served to hand more momentum to them.

“It’s cack-handed how [the policy] has been handled,” one industry executive said. “The narrative has got out badly, and now environmental campaigners are treating it poorly. We’re expecting backlash, as we’re now being targeted for the failure of water companies.”

He also hinted that the policy had come too late. “This is not an overnight solution… Inflation, lack of demand and the cost of living crisis has meant we won’t see the same level of building we could have,” the source said.

Government plans to tear up EU-derived requirements on pollution from housebuilding have been years in the making, with fears over an environmental backlash stymieing previous proposals.

Builders have been complaining publicly about the policy since 2021, which require new housing developments not to increase the amount of nutrient pollution in protected rivers.

Developers are required to offset any new pollution, for example by contributing to the development of new wetlands which naturally filter surface run-off. Offsets can cost up to £15,000 per home.

The law, which was retained during the Brexit period, halted development in a number of counties following interventions from Natural England. The policy has been a popular target for reform, with former prime minister Liz Truss pledging to scrap the policy last year, and Levelling Up Secretary, Michael Gove, touting reform in July.

The current rules have proved controversial with claims developments have been blocked where the rules have been applied too stringently and that builders have bought up trout farms to shut them down in order to meet nutrient neutrality rules.

Despite the long-touted reforms, the housing industry and environmentalists appeared to have been blindsided by the announcement on Tuesday morning, with the executive labelling it a “farce”.

An announcement was rushed out following briefings to a number of papers, while some environmental groups and housebuilders were unaware any reforms were due.

Environmental activists accused the Government of lying over pledges not to weaken EU environmental legislation.

Housing industry sources are also concerned the issue could become a lightning rod for river campaigners, who are dissatisfied with the Government’s attempt to tackle it.

Housebuilders argue that they contribute a very small amount to river pollution, compared to water companies and farmers.

Sources have pointed the finger at Tony Juniper, the chairman of Natural England, as the driving force behind the current strict interpretation of the law.

Mr Juniper has denied claims that Natural England or nutrient neutrality was causing a blockage in housebuilding, defending the policy regularly.

In an interview with i last month, Mr Juniper called on housebuilders to stop complaining and to “see the bigger picture” of the legislation.

Housebuilders have privately questioned whether his role is still tenable, given his spirited defence of the rules. It is understood Mr Juniper has tried to blocked any attempts to loosen nutrient neutrality rules in order to aid development when asked by central Government.

Industry pressure on Mr Juniper also extends to the Housing Secretary. While Mr Gove has been recently supportive to builders over the changes, he had previously been criticised for a lack of action.

Mr Juniper’s appointment to Natural England was made by Mr Gove during his period as environment secretary in 2019.

An industry source told i that some housebuilders had refused to provide supportive quotes for the Government’s announcement, on account of a hostile relationship with Mr Gove. They remain frustrated with him over a policy requiring developers to pay for dangerous cladding.

One developer said that the relationship between the industry and minister were “non-existent” following prolonged antagonism between the parties during cladding negotiations, with Mr Gove labelling the housebuilders a “cartel”.

Mr Gove said in a statement: “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.