Lord Hendy of Richmond Hill (Lab)

My Lords, it was of course a pleasure to hear the noble Lord, Lord Gascoigne, introduce these amendments. He referred to the success of the Thames Tideway project, and there were a number of references to who did it. The person in charge of that project is Andy Mitchell, who has done an extraordinarily good job, so it is quite right that his name should be referred to next to the project itself. The amendments seek to insert new clauses specific to water infrastructure. Amendment 59 tabled by the noble Baroness, Lady Coffey, seeks to remove the size and complexity test from the specified infrastructure projects regulations, known as SIPR. The Government are resisting this amendment because we have already committed to reviewing the SIPR framework. That was set out in the Chancellor’s New Approach to Ensure Regulators and Regulation Support Growth policy paper, published in March 2025, which confirmed that Defra will amend the SIPR framework to help major water projects proceed more quickly and deliver better value for bill payers. It is important that the planned review goes ahead so that any changes are properly informed by engagement with regulators and industry. Removing the size and complexity threshold now would pre-empt that process and risk creating a regime that does not reflect the sector’s diverse needs or long-term priorities. We will continue to work closely with stakeholders to ensure that the specified infrastructure projects regime remains targeted and proportionate and delivers value for customers. The noble Lord, Lord Jamieson, asked by when this review will be completed, and I can assure him that it will be completed in this calendar year. I therefore thank the noble Baroness, Lady Coffey, for tabling the amendment, but I kindly ask the noble Lord, Lord Gascoigne, to withdraw it on her behalf. Amendment 61 tabled by the noble Lord, Lord Lucas, seeks to introduce enabling regulations for milestones and enforcement for various delivery phases of all water undertakers’ reservoir proposals. The Government have already taken urgent steps to improve water security. This involves action to improve water efficiency and to reduce water company leaks alongside investing in new supply infrastructure, including new reservoirs and water transfers. We are taking action to speed up the planning process for new reservoirs. For example, we recently revised the National Policy Statement for Water Resources Infrastructure to make clear that the need for the proposed reservoirs in the water companies’ statutory management plans has been demonstrated. Ofwat’s price review final settlement in December 2024 for the water sector has also unlocked record investment, around £104 billion of spending by water companies between 2025 and 2030. This includes £8 billion of investment to enhance water supply and manage demand, such as enabling the development of nine new reservoirs. As part of that, leakages will reduce by 17%. We have taken steps with Ofwat to improve water company oversight by increasing reporting and assurance requirements on companies’ delivery, improving protection for customers from companies failing to deliver the improvements by returning the funding to customers, and encouraging companies to deliver on time by applying time-based incentives. The Government, as the Committee has already heard, also commissioned Sir Jon Cunliffe to lead the Independent Water Commission, to which the noble Lord, Lord Lansley, referred. It is a once-in-a-generation opportunity to modernise the water industry and deliver resilient water supplies. The Government are grateful to Sir Jon and the commission for their work and will carefully consider their findings and recommendations, including those that the noble Lord, Lord Lansley, referred to. We will provide a full government response to the commission’s report in the autumn, setting out our priorities and timelines. The Government will introduce root and branch reform to revolutionise the water industry. Working in partnership with water companies, investors and communities, the Government will introduce a new water reform Bill to modernise the entire system so that it is fit for decades to come. I hope that the noble Lord, Lord Lucas, is therefore reassured that the proposed new clause is unnecessary, and I kindly ask him not to move his amendment. Amendment 62, introduced by the noble Lord, Lord Gascoigne, on behalf of the noble Baroness, Lady McIntosh, is not necessary. It is a probing amendment to encourage the consideration of measures to facilitate the construction of small reservoirs. The Government are already encouraging building both small and large reservoirs. That improves resilience to climate change, sustains food production and water security and supports economic growth. Reservoir safety legislation does not prevent new reservoirs being constructed but does ensure that structures are well built and maintained. The streamlining of the planning system will make them quicker and easier to build in the future. However, it is important that new reservoirs do not pose flood risks for local communities by being built in the wrong locations and that existing reservoir dams are structurally safe. Reservoirs that store water above ground level pose risks to life, property, businesses and the environment, and could cause economic disruption to local communities if the dam structure were to fail. These risks are managed through reservoir safety regulations. Reservoirs that store water below ground level do not pose the same risks and so are out of scope of the reservoir safety regulations. Current advice to farmers and landowners who wish to build reservoirs is to consider options for non-raised water storage. The Government intend to consult in the autumn on proposals to improve reservoir safety regulations, including making the requirements more tailored to the level of hazard posed and bringing some smaller raised reservoirs in scope. These proposals do not alter the need for more reservoirs, nor prevent new ones being built. They are to ensure that reservoir dams are structurally sound and that flood risks for communities down stream are effectively managed. I appreciate the interests of noble Lords in tabling these amendments. However, for the reasons I have set out, I kindly ask the noble Lord to withdraw the amendment.