Budget: radio silence on water

Last week's Budget announcement by the Chancellor made no mention of water infrastructure investment. There were pledges of funding for projects in aerospace, the automotive industry, digital infrastructure, education, green hydrogen, carbon capture and storage, health, rail and roads.

Defra released a statement on the Budget’s implications for farming.

Resource Departmental Expenditure Limits show annual real growth 2023-24 to 2025-26 for 19 departments, but a reduction for five departments, of which Defra is one (-1.9%). Defra’s capital spend will increase by 12.6%, but the increase is focused on investment in flood defences, farming, biodiversity and waste management.

The Cambridge Growth Company was given £10m to develop plans including for water. Housing minister Matthew Pennycook also last week appointed Homes England chair Peter Freeman as chair of the Cambridge Growth Company, to drive forward the government’s growth ambitions in Greater Cambridge.

Water companies want to play their part in attracting private sector investment to fund water upgrades. The Government has shown ambition in other sectors. December’s Final Determinations will reveal whether Ofwat will permit allowed returns and bill increases to underpin significant investment to improve environmental outcomes and increase resilience in water.