Future Flood and Water Management Legislation

Memorandum submitted by

The Department for Environment, Food and Rural Affairs (Defra) (FFW 24)

1. Defra’s structural reform plan1 commits the Government to "implement the findings of the Pitt Review to improve our flood defences and prevent unnecessary buildings in areas of high flood risk "; and to "r eform the water industry to enhance competition and improve conservation ".

2. On the latter , the reform plan commits the Government to p ublish a White Paper in June 2011 on reform of the water industry to ensure more efficient use of water and to protect poorer households , and put the required legislation in place by November 2012 . The Water White Paper will be developed closely alongside the Natural Environment White Paper. The Natural Environment White Paper will be broader in scope and will consider our wider water environment including the effects of pollution and water availability.

Natural Environment White Paper – to be published April 201 1

3 . M ajor pressures on the environment are driving continued use of natural resources beyond their capacity for renewal and causing ongoing damage to our natural systems. In general, these pressures are now systemic, diffuse and cumulative in character, as opposed to the ‘point source’ pollution which much existing environmental policy was designed to address . This suggests a need for future policy to focus on the ecosystem as a whole , rather than separate facets in isolation.

4 . The Natural Environment White Paper will articulate a new, compelling and integrated vision about the value of our natural environment, capital and services . It will set out a programme of actions designed to put the value of the natural environment at the heart of Government accounting and decision-making . It will take in policy on marine, air quality, biodiversity, soil, landscape and recreation and water.

5 . The White Paper will be a key part of the commitment to be "the Greenest Government ever".

The Water White Paper – to be published June 201 1

6 . The Water White Paper will cover the following themes:

o securing sustainable water supplies;

o increasing choice and delivering better value to customers;

o modernising the current regulatory system;

o ensuring fair and affordable water charges; and

o incentivising water conservation.

7 . The intention is for the White Paper to set the high-level strategic framework for the next Ofwat Price Review, taking into account the various reviews to date, including:

o Anna Walker’s Review of charging for household water and sewerage services (we will be consulting on proposals on this later in the year , although many of Anna Walker’s recommendations do not require consultation or new legislation ) ;

o Martin Cave’s Review of competition and innovation; and

o Our review of Ofwat, being led by David Gray – due to conclude in March 2011 .

8 . We will be considering the need for legislation to implement the policies outlined in the White Paper . Regulation will only be pursued once non-legislative options have been ruled out. However, s ome deregulatory measures under consideration would themselves require primary legislation.

Remaining measures from the draft Flood and Water Management Bill

9. Government is currently considering the case for bringing forward the other measures included within the draft Flood and Water Management Bill which were not included in the final Act. Whether and how quickly these measures come forward will be subject to our stringent tests on the need for new legislation, as well as the availability of Parliamentary time.

Flood and Water Management Act 2010 Implementation

1 0 . The first commencement order for the Act was laid in P arliament on 31 August; commencing powers to make orders under section 4(2) (f) and section 36 of the Act. These powers have been used by ministers to make two orders (Flood Risk Management Functions Order and the Water Use (Temp orary Bans) Order) which ca me into force on 1 October .

1 1 . Also co mmencing on the 1 October we re definitions within the Act; statutory instrument making po wers; and the provisions that require the Environment Agency and local authorities to develop strategies for risk management. The main responsibilities for local authorities are expected to start in the spring , coin ciding with the start of the next spending period and the availability of funding released by the transfer of private sewers . The implementation timetable is subject to change as we re-examine the case for introducing further regulation.

Sustainable Drainage Systems (SuDS)

1 2 . We are currently scoping the regulations for aspects of approvals and appeals, adoption and enforcement. We are also preparing draft SuDS National Standards. The technical standards should provide a framework to guide decision-making, but be flexible enough to take account of local and site-specific circumstances. We intend to consult on the timescale of implementation of SuDs provisions, but do not anticipate these will be in place earlier than the common commencement date of October next year.

13. The Government is currently considering options including around the requirement for approval and whether a phased approach would give local authorities, developers and others time to familiarise themselves with the new requirements. Under this scenario new SuDS would be approved, built and adopted over time, which would see funding requirements grow progressively in a manageable way.

14. We are developing options for long-term funding for adoption. Initially, SuDS adoption will be funded from the transfer of private sewers.

Transfer of Existing Private Sewers and Drains to Water and Sewerage Companies (WaSCs)

15. A joint consultation with the Welsh Assembly Government is currently underway on regulations that would implement the transfer to WaSCs from October 2011 of private sewers that drain to the public sewerage system. The transfer of pumping stations is proposed to take place by October 2016 to allow water and sewerage companies time to resolve technical and health and safety concerns.

16. The government proposes that new sewers intended to connect to the public system should automatically be adopted by WaSCs. A mandatory build standard for new drains and sewers will help to ensure that there is certainty and consistency in what gets built and what is required of developers. Discussion of the detailed standards with stakeholders is ongoing and a public consultation is proposed for later this year.

October 2010