Environment, Food and Rural Affairs CommitteeWritten evidence submitted by Local Government Association

1. Introduction

1.1 The LGA welcomes this opportunity to offer written evidence to the Environment, Food and Rural Affairs Select Committee’s inquiry into the Government’s Water White Paper.

1.2 The LGA welcomes the positive ambition of the White Paper in its aims of achieving a green economy with a sustainable, resilient, affordable water supply.

1.3 It is essential in helping to achieve the White Paper’s aims that any solution for the source and mechanism of long-term funding for the maintenance of sustainable drainage systems works for local authorities.

1.4 LGA would like to see a more joined up approach to investment in nationally significant infrastructure networks that is based on the needs of local economies, understands their impacts at local level, and provides certainty for decision making at local level.

2. Infrastructure

2.1 The LGA supports the encouragement of the use of Sustainable Drainage Systems (SuDs) in helping to reduce flood risk and reduce pollution. However, it is essential that any solution for the source and mechanism of long-term funding for the maintenance of sustainable drainage systems works for local authorities and does not impose additional burdens. LGA would also like to stress the importance of ensuring that Government provide sufficient support to ensure councils have sufficient skills and capacity to deliver all their flood risk management responsibilities.

2.2 The LGA will be responding to the Defra consultation on SuDs.

2.3 Some issues—waste, energy, infrastructure, housing, flooding—are just too big to be dealt with by one authority. The new duty to cooperate in the Localism Act places an emphasis on Local Planning Authorities (LPAs) collaborating, with each other, and with other public bodies including county councils and others to understand and plan for the wider economic and housing market areas of which they are a part.

2.4 In the spirit of localism however LGA does not believe that Government needs to prescribe in national legislation or guidance the exact processes to be adopted by LPAs. There are numerous examples of councils working together across areas to plan for strategic priorities. For example—shared commissioning of an evidence base; cross-boundary strategic housing market assessments (SHMA); aligned core strategies; joint core strategies; Joint Planning Units (JPUs) and combined waste plans.

2.5 Clearly the role of the water industry is crucial in supporting councils work to plan strategically for infrastructure and growth. The White Paper is an ideal opportunity to incorporate proposals to ensure that water companies collaborate effectively with local authorities. This is essential to ensure sufficient water supply and water/sewerage capacity is available to support economic development and housing demand now and in the future.

2.6 The proposals that the Government, Environment Agency and the water industry consider further whether there are strategic national infrastructure projects necessary to ensure water supplies remain resilient are welcomed. However, this must not happen in isolation of other infrastructure required to ensure economic development can take place.

2.7 The LGA has put forward proposals to Government in our document Funding and Planning for infrastructure which would provide support for infrastructure needed to unlock development sites and support new housing supply. In brief we propose that:

(a)We need to rethink the way investment is funded and planned through bringing together different funding streams into one place-based pot.

(a)This model needs to be complemented by planning and management of development based on local economies. This will require:

A joined up approach to investment in nationally significant infrastructure networks that is based on the needs of local economies, understands their impacts at local level, and provides certainty for decision making at local level.

Aligning planning and investment decisions at the right economic level by encouraging councils to plan and coordinate infrastructure delivery at the level which reflects the functional local economy.

Removing unnecessary bureaucracy and prescription in the planning system will allow local people and their directly elected representatives to plan effectively for the development of their area.

3. Energy/Climate Change

3.1 The LGA has put forward proposals to Government in our document Funding and Planning for infrastructure which would provide support for infrastructure needed to unlock development sites and support new housing supply. In brief we propose that:

3.2 The LGA supports the Water White Paper’s aim to encourage and incentivise water efficiency measures, and its proposals for using the Green Deal as a possible mechanism to deliver this. Several local authorities are taking a leading role in the delivery of the Green Deal, and will be seeking to make it locally appropriate. There could be opportunities for them to also explore offering water efficiency measures. The Government could consider a similar mechanism to the Green Deal to help pay for installing measures which protect housing in flood risk areas.

3.3 Space and water heating accounts for the majority of energy use in the average home, so any incentives that can be offered to encourage water efficiency which would in turn reduce energy and water bills for customers are welcomed by the LGA. The White Paper could make more reference to rainwater and grey water re-use systems including the opportunities of incorporating these systems into new developments.

3.4 LGA would like to stress the importance of Government Departments developing policies from a delivery perspective, rather than from their specialist departmental viewpoint. A householder does not know that DECC are responsible for energy and Defra for water—they will just want an offer that improves the environmental credentials of their home. The LGA is currently responding to the Department of Energy and Climate Change (DECC) Green Deal consultation in which water does not feature prominently.

3.5 It is essential that climate change factors are taken into account in future planning for water supply and water/sewerage infrastructure to alleviate predicted increases in water scarcity (drought) in some areas and increased flooding in others.

3.6 The LGA is working as a delivery partner for the Environment Agency’s adaptation advice programme and is supporting the development of a package of support for local councils to adapt effectively to climate change across service areas—this will of course cover issues of water scarcity and flood risk. To support delivery LGA is hosting a secondment from the Environment Agency until April 2013.

4. Affordability

4.1 The LGA welcomes the introduction of final guidance to water companies and Ofwat on social tariffs early in 2012, which will be beneficial in tackling both affordability pressures and alleviating bad debt problems for many water customers.

4.2 Whilst LGA agrees that keeping water bills affordable to all and minimising increases as much as possible is very important, this should not be at the expense of adequate investment or as a result create additional costs for future generations. The LGA wishes to ensure that there are not unnecessary burdens placed upon water customers but that their long term interests are best served by appropriate investment in infrastructure for which they will have to pay through charges. This is better than the alternative—having to pay for disruption and repair as tax payers or as insurance policy holders.

January 2012

Prepared 4th July 2012