A recent decision by secretary of state Michael Gove on a Cambridge development highlights an issue that will increasingly come to dominate planning applications, write Katy Klingopulos and Angus Walker.
In April, Michael Gove granted planning permission for a development in Cambridge, on appeal from non-determination by South Cambridgeshire District Council. The outline application was for up to 425 residential units and two commercial units alongside a full application for a further three commercial units for offices and research and development. The decision is good news indeed for housing supply and R&D space in Cambridge, with both in short supply.
However, in a water-depleted area, the consideration of water resources by the secretary of state particularly sticks out.
The decision says: “The secretary of state has carefully considered the effects of the proposal upon water supply. The secretary of state has noted the inspector’s judgement… that while water quality and supply is a material consideration, the proposal would not in itself harm water quality or water resources, but that cumulative impacts of the appeal proposal with other development would add to demand
for water.”
Details of the decisions
There is an acknowledgement that water scarcity is an issue in Cambridge and that this will increase with further development. But, because on a stand‑alone basis this particular development will not impact water scarcity or quality, Gove therefore applied a “neutral” consideration to water supply and quality to this decision.
He also declined to add any further conditions to the planning permission, citing the introduction of “water credits” and other changes to reduce water use announced in the joint Department for Environment, Food and Rural Affairs and Department for Levelling Up, Housing and Communities guidance (Addressing Water Scarcity in Greater Cambridge, 6 March 2024).
There is one condition attached to the planning permission requiring a water conservation strategy to be approved by the local planning authority as part of reserved matters. All dwellings must achieve a typical design standard of water use of no more than 89 litres per person per day, which is tight bearing in mind the average water use per person per day in England and Wales is currently 142 litres.
Water scarcity
Water scarcity is not a new phenomenon, but increasingly poses problems for developers and the government alike. In an environment where we are increasingly aware of climate change and where droughts and floods are becoming more commonplace, the idea of building additional homes in places where water is already scarce seems counterproductive.
Water Resources East, the group tasked by the government to create a regional water resources plan to 2050 and beyond, produced a regional water resources plan for the East of England in December 2023.
It identified that the East of England is classified as “seriously water stressed”, with the Cambridge area alone potentially suffering a water deficit of between 40 and 65 megalitres per day by 2050. The report identifies a number of projects to provide resilience, including the time-limited Grafham Water transfer, the Fens Reservoir, and the new strategic pipeline to be constructed to bring water from Lincolnshire
In granting the permission for the Cambridge North site, the secretary of state had the option of delaying any occupation until either the Grafham Water transfer supply is operational or until the Water Resources Management Plan for the Cambridge Water area has been approved.
Gove chose neither of these options.
The impact of residential development on water scarcity is stark. The Greater Cambridge Shared Planning Service has delayed progress of its local plan for Cambridge city and south Cambridgeshire, citing (among other factors) uncertainty around the water supply. The detailed work which has been put into a plan trying to bring two closely connected areas together into one spatial concept is given “limited weight”, according to Gove.
NSIPs and DCOs
Great reliance is being placed on major infrastructure projects being brought forward to secure the long-term sustainable water supply required for the area. The Fens Reservoir is under consultation by Anglian Water, with phase two starting at the end of this month. But even being recognised as a nationally significant infrastructure project, the timelines are such that the development consent order application is not expected to be submitted until 2026 at the earliest, with a decision in 2027/8 and the reservoir opening in 2036.
A number of smaller projects will be “plugging the gap”, but these large projects will safeguard the supplies in the future with more certainty.
The government is trying to speed up the consenting process for NSIPs with the introduction of a new “fast track” application route and charging powers for third parties to encourage more timely engagement. These changes may not be enough to address the scarcity of water supply in the Cambridge area, however.
In the meantime, the introduction of a “water credit” system later this year in the Cambridge area may, if it works, be extended to other water-stressed areas in the country and so major developers should take note wherever they are.
Angus Walker is a partner in the planning and infrastructure team and Katy Klingopulos is a legal director in the property team at BDB Pitmans
