Builders say hundreds of construction companies will have to close if the block on building new homes in parts of Norfolk isn’t lifted.

Under current rules, imposed on local councils by Natural England 18 months ago, new housing developments can’t be granted planning permission until they can prove they won’t contribute to river pollution.

Eastern Daily Press: Builders warn thousands of jobs could be lost because of the nutrient neutrality issueBuilders warn thousands of jobs could be lost because of the nutrient neutrality issue (Image: Mike Page)

But construction companies say the ban is pushing them “over the edge”, with staff already laid off and thousands more jobs at risk.

Clive Binks, a director at Pulham Market-based housing developer Orchard Homes, has five sites in the planning system, all of which are on hold because of the block.

Eastern Daily Press: Clive Binks, a director at Orchard Homes, said staff had already been laid off as a result of the ban on new builds in parts of NorfolkClive Binks, a director at Orchard Homes, said staff had already been laid off as a result of the ban on new builds in parts of Norfolk (Image: Orchard Homes)

He said they have already started layoffs, and that more would follow if something didn’t change soon.

He said: “If one of our sites isn’t passed in the next six to nine months we will have run out of developable plots, it’s a nightmare scenario for us and countless other small developers.

“National builders are fortunate to have large land banks to fall back on, we as a small family business do not have that luxury.”

It's a similar story for Scott Daniels, who owns Danco Building Services, a construction company based in Wroxham.

Eastern Daily Press: Scott Daniels, who owns DANCO building services, said he fears having to lay off staffScott Daniels, who owns DANCO building services, said he fears having to lay off staff (Image: DANCO)

He said the firm has around £400,000 worth of work on hold because of the ban, and that he was weeks away from having to lay off 12 members of staff.

He said: “We desperately need this work, my boys have mortgages to pay and families to support.

“The big builders are cracking on but the smaller companies like us are being royally shafted.

“Farmers contribute much higher levels of pollution to our waterways, but it's the developers that are being penalised. It’s absolutely diabolical.”

WHAT IS THE BAN?

Government advisors Natural England told Norfolk councils last March that they could not permit planning applications for homes within the catchment areas of the River Wensum and the Broads.

The halt was because of fears extra nutrients created by homes could go into waterways and harm species.

Councils were told they could not approve housing schemes until mitigation measures were in place.

Prime minister Rishi Sunak and local government secretary Michael Gove visited Norfolk last month to announce to announce bill amendments to remove that requirement - only for the House of Lords to vote the changes down.

Norfolk council bosses are now depending on a joint venture with Anglian Water to allow housebuilders to 'offset' the impact of developments by buying 'credits' to fund mitigation measures and allow decisions.