Government details funding and legislative measures to address developments stalled by nutrient neutrality

The Department of Levelling Up, Housing and Communities (DLUHC) has detailed funding efforts and new legislative measures aimed at unblocking developments stalled by nutrient neutrality rules.

The move follows its failed attempt at axing the rules through the Levelling Up and Regeneration Bill (LURB).

In a letter sent to all council leaders yesterday (19 December), Local Government Minister Lee Rowley said efforts to get rid of the rules were intended to unlock 100,000 homes between now and 2030.

In September 2023 the House of Lords voted to block an amendment to the LURB that would have seen the end of nutrient neutrality rules.

The bill had advanced to the report stage at that time, meaning the Government was unable to re-introduce the amendment to the LURB ahead of it receiving royal assent.

The EU-derived regulations require that development in 62 local authority areas must be 'nutrient neutral'.

Rowley wrote that the Government has "carefully considered" the case for reintroducing the measures through new primary legislation in the next Parliamentary session, but in the meantime the department "remains committed to making rapid progress to unlock homes".

He then detailed the introduction of a new duty set out in the LURB which requires water companies to upgrade wastewater treatment works (WwTW) by 1 April 2030 in catchment of ‘Habitats Sites’ identified by the Secretary of State as being in unfavourable condition due to nutrient pollution.

The LURB also requires planning decision-makers to consider these upgrades as certain for the purposes of an assessment under the Habitats Regulations.

"These upgrades will significantly reduce nutrient loads from WwTW in designated catchments, while also reducing the average costs of nutrient mitigation for developers," Lee Rowley said.

For new development connecting to WwTW subject to the upgrade duty, the reduction in costs is estimated to range between 37% to 95% for phosphorus and between 46% to 64% for nitrogen, depending on the catchment and subject to final analysis, the letter said.

Rowley also highlighted an Autumn Statement commitment that the Local Nutrient Mitigation Fund will spend £110m of taxpayer money over this year and next.

He wrote: “This will enable local authorities to boost the supply of mitigation, by bringing forward innovative mitigation schemes and providing mitigation credits.”

He claimed this would enable sustainable development, unlocking stalled housing delivery, whilst delivering secondary benefits like enhanced public access to nature.

Rowley said DLUHC is now making available the first tranche of up to £57m capital funding to eight successful bidders.

The Department is also providing a second round of Nutrient Support Funding with another £100k for 2023/24 the lead local authority for substantive catchments (those over 10,000 hectares in size, Annex B).

The minister also said that the DLUHC is committing to opening the second round of the Local Nutrient Mitigation Fund in early 2024.

Rowley later added: "As ever, the department will work closely with affected local authorities to ensure we continue to make progress to unblock development that is stalled as a result of nutrient neutrality. We will also consider further measures as necessary. Finally, I would like to thank you for all the work and the leadership that LPAs are showing on this challenging issue at a local level.

"The House of Lords were absolutely wrong to make this decision, but we will continue to take all efforts ensure we unlock development, to allow people to have access to the homes that they need."

Adam Carey