Moves to tackle water scarcity aim to drive forward ‘Europe’s Silicon Valley’

Efforts to develop what could be “Europe’s Silicon Valley” in a region spanning from Cambridge to Oxford have faced a significant challenge – a lack of water.

But the go-ahead for a series of new reservoirs under the £104 billion investment deal for the water sector, approved by regulator Ofwat last month, may help deliver the housing, labs and facilities that the vision requires.

The Oxford Cambridge Growth Corridor is seen as a way to boost the UK’s economy by building on the two university cities’ expertise in areas such as life sciences and artificial intelligence – with improved transport links through the region, housing and facilities.

But the East of England faces critical challenges from rising temperatures, falling rainfall, water scarcity and a growing population, according to a report by Anglian Water in 2023, threatening the important agriculture and industry in the region.

The Environment Agency has previously objected to new development around Cambridge, served by Cambridge Water which draws supplies from chalk aquifers, over concerns about a lack of water in the region’s environment – which includes internationally important chalk streams.

It also objected to a new Cambridge cancer research hospital over water scarcity, although the development has been given the go-ahead and is now being prioritised by the Government.

As part of Rachel Reeves’ growth speech, it has been announced the EA has lifted objections to development at Waterbeach and the Beehive centre, after Cambridge Water demonstrated it could address the water scarcity issues.

The Government said the move unlocks the delivery of 4,500 new homes along with schools and leisure facilities, as well as office and laboratory space in Cambridge city centre.

A new reservoir in the Fens, which developer Anglian Water says will supply 250,000 homes, will also help deliver the thousands of homes planned for the area over the coming decades.

Mark Thurston, chief executive of Anglian Water, said: “Securing resilient water infrastructure is vital to unlocking growth, and in our region, which is the fastest growing, the driest and prone to flooding, we need to build infrastructure on a scale never seen before.

“The Chancellor is getting stuck in on what matters, recognising the critical role of the water sector so we can deliver on the billions of pounds of investment and upgrades planned.”

He added the Fens reservoir, along with another in Lincolnshire, would each supply up to 250,000 homes “while also delivering social, economic and environmental benefits for the communities around them”.

Cambridge City Council leader Mike Davey said leaders across the public, private and university sectors in the city supported the Government’s growth mission, and the Chancellor had “rightly” put a premium on investing in sectors such as AI, genomics, advanced manufacturing and life sciences.

But the Government needs to bring local communities with them, he said.

He added: “We think it’s critical to the country’s future that we maximise the potential of Cambridge – but we also recognise that to do this will mean investing in the ‘hardware’ of the city.

“That means more affordable housing, investment in water and transport infrastructure to maximise growth sustainably for Cambridge, the region and the UK.”

The Government said it was committed to tackling water scarcity in Cambridge, including through the delivery of a water efficiency programme and development of a water credits scheme, as well as measures to secure long-term water supplies.

In a statement, Cambridge Water said it was pleased the Chancellor is supporting the need for the Fens Reservoir, which it said would help deliver environmental improvements and support sustainable growth.

The company said: “We’re committed to supporting the sustainable development of Cambridge by investing in new water supplies to provide resilience against the impact of our increasing population and climate change.

“The new Fens Reservoir, which we are working on in partnership with Anglian Water, will deliver around 44 million litres of water a day to our region, supplying thousands of homes and businesses and this will reduce the strain on our environmentally sensitive water sources including our chalk streams, a key feature of the Cambridgeshire landscape,” it said.