Water shortages risk stifling UK growth as restrictions hit businesses

Access to new water supplies for UK businesses is being restricted because of long-term water shortages, research by water services and treatment specialist Alpheus has revealed.

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Data from Environmental Information Requests submitted to water companies across the country found that new supplies are being restricted for non-domestic requests.

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Large areas of the UK are already water-stressed, and the Environment Agency warned earlier this year that England faces a 5 billion litre a day shortfall for public water supplies by 2055.

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In addition to the long-standing water shortfalls, last week, England experienced its fourth heatwave of the summer, and four regions of the country are currently under drought-related hosepipe bans.

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Responses to Environmental Information Requests submitted over the summer have revealed that Essex and Suffolk Water are currently imposing a moratorium on new or increased non-domestic connections in the Hartismere water resource zone until 2033. This means businesses needing more water for commercial or industrial purposes will not be granted additional capacity even if they have an existing connection.

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Cambridge Water stated that it was unable to facilitate supply requests exceeding 20m3 a day for non-domestic purposes until 2032.

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Anglian Water said that it is currently having to limit non-domestic requests to 20m³ a day, due to limits on its own abstraction licences, along with the difficulty of forecasting non-domestic growth. As a result, Anglian Water is asking its users to explore alternative options, such as effluent reuse, rather than using drinking water where it’s not needed.

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For many businesses, access to a new water supply is a critical part of growth and expansion plans. Without this access, there is a risk that economic growth in water-stressed regions could be significantly restricted.

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Chris Deadman, MD at Alpheus, a leading wastewater management and environmental solutions provider, said: “The recent Environment Agency report into water shortages across England outlined the significant challenges we face. Within this context, it’s completely understandable that water companies are taking measures to restrict access to new water supply in water-stressed regions.  

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“However, these restrictions do pose a real challenge for businesses, who may find they are not able to access the water resources they need. Amplified across the UK’s water-stressed regions, the number of businesses affected and the overall economic impact is likely to be significant.

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“It’s undoubtedly a challenging time, but there are strategic decisions businesses can be making to build water resilience into their growth plans. For example, businesses can reduce their reliance on fresh water supply and reduce the amount of wastewater they release by introducing closed-loop systems, where water is treated and reused on-site. By recycling water internally, businesses can ensure they reduce the impact of water scarcity during periods of drought.”

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As the UK’s largest manufacturing sector, the food and drink industry is particularly susceptible to water-scarcity-related disruption. However, additional survey research by Alpheus* has revealed that more than half of food and drink manufacturers (61 per cent) do not have a water contingency plan in place for their UK sites. This is despite 94 per cent saying a consistent water supply is critical to their day-to-day operations.

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Alpheus’ survey of its customers and Food and Drink Federation members, which includes some of the UK’s biggest food and drink manufacturers, also found that none of the respondents believed the impact of water infrastructure constraints was well understood in the UK’s national economic and planning policy.

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65 per cent of respondents felt that these constraints were either poorly or very poorly understood.

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Chris Deadman added: “Food and drink is the UK’s largest manufacturing industry, and it’s also one of the most exposed industries to water scarcity disruption. Across the sector, there is a real imperative for strategic investment to build in greater levels of water resilience.

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“Looking to the future, we will all need to consider how we can champion strong water stewardship, water re-use and prioritise investment which supports the growth the country needs while also preserving our finite water resources.”

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^{* Survey respondents were 18 of the UK’s largest food and drink manufacturers, of which 33% reported annual turnovers in excess of £1billion, and 94% reported annual turnovers in excess of £25million.}