Businesses in a water shortage zone in East Anglia have been banned from expanding, with some forced to move or even shut up shop for good.
Firms in an area of central Suffolk known as the Hartismere Water Resource Zone have been told by Essex and Suffolk Water not to use any more water than they currently do.
Other companies have not been allowed to set up in the area as no new mains water connections for non-domestic use are being approved in the zone, centred around the town of Eye.
The moratorium will remain in place until 2033, when new water supply schemes are expected to be operational.
Essex and Suffolk Water say the measure is due to the area's rising population, which it forecasts to increase by almost a quarter in the next 25 years.
The water company said it does not have enough water to meet the demand.
The Environment Agency has classed East Anglia as ‘seriously water stressed’, with some fearing similar restrictions could soon be imposed on businesses in other parts of the region.
‘CUT OFF AT THE KNEES’
Henry and Barry Chevallier Guild took over Bruha Brewing in Eye, which had been running for six years, in 2023.
The brothers, who previously owned Suffolk cider company Aspall before selling it in 2018, had planned to double Bruha Brewing's output capacity.
They have already invested more than a quarter of a million pounds into the business, but their dreams have been dashed by the water zone.
“We really doubled down on what we thought the future was going to be,” Henry said.
“We wouldn’t have bothered with any of it if we were told we were going to get cut off at the knees.
“You need water to brew beer, so it is impossible to make alternative arrangements.
“They’re essentially asking us to move out of the region, but the whole Raison d'être for this business is that it is Suffolk based.
“It would probably cost us £60,000 to £100,000 to move this place. If we had known this was coming a year ago we would never have invested.
“It strikes me as madness that you have a government that wants growth at the heart of its economy and allows things like this to happen.”
‘WE WOULD BE FORCED TO MOVE’
Alan Ridealgh is the co-founder and owner of Humber Doucy Brewery in Bacton, near Stowmarket, which also falls within the Hartismere Water Resource Zone.
He started brewing alongside his son, John, in 2019, and together with shareholders they have invested £300,000 into the business.
Mr Ridealgh received a letter from Essex and Suffolk Water about the moratorium in June. In an ironic twist, it was delivered the same week he was awarded a grant from Mid Suffolk District Council (MSDC) to expand his businesses.
The grant was to cover 50pc of the capital investment for tripling the brewery’s bottling capacity, which included two new fermenters.
“We can’t grow with it in place, so we would be forced to move,” he said.
“98pc of beer is water and you need about three-and-a-half pints of water to make one pint of beer.
“The balance is used for cleaning. In our case, all of that cleaning water is collected in a tank and then collected by a company that takes it to a treatment works, so we would argue we are returning that water to the system.
“We’re only 100m away from the Anglian Water system.”
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BUSINESSES IN LIMBO
Tim Norman is the owner of Inspired Waterjet, based at an industrial estate in Denham, near Eye.
The firm uses jets of pressurised water to cut material to make parts for various industries.
“I’ve got two units here and the landlord was looking to put up some new units, but this was rejected with water usage cited as the reason,” he said.
“I was going to move into one of the larger units to expand. It stifles what I’m able to do. It’s a limbo situation as we can’t plan for the future.
“We’ll have to move eventually, when we can, which seems a shame for the area.”
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'WE KNEW THIS WAS COMING'
Andrew Stringer, MSDC's cabinet member for heritage, planning and infrastructure, said under current legislation water companies, such as Essex and Suffolk Water, have a statutory duty to provide water for housing growth.
The council is currently building more than 900 houses a year, but the government wants it to increase its target.
“The legislation favours housing over employment,” Mr Stringer said.
“We’re now grappling with decades of underinvestment but we’re still building hundreds of new homes.
“I blame the governments and the regulator. The regulator should have made sure that the investment was put in so we could continue to invest in and expand businesses, as well as investing in housing.
“We’re now at the stage where we cannot do both because of the lack of investment in infrastructure in the past.
“We’ve known this has been coming for several years.
“There’s no point building houses if there are no businesses for people to work in.”
'WE DO NOT HAVE ENOUGH WATER'
Essex and Suffolk Water said it was asked by the Environment Agency to reduce the amount of groundwater it is currently taking to ensure there is enough water left for the environment.
Kieran Ingram, water director at Essex and Suffolk Water, said the firm forecasts the population in the area will rise by 22pc in the next 25 years, an increase of around 5,000 people.
“We do not have enough water to meet the demand,” he said.
“The moratorium is in place so we can build infrastructure to make sure that by 2033 we can keep up with that demand and give customers enough water for then and into the future.”
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Mr Ingram said the firm’s “priority is to protect existing customers”, with the majority being domestic water users.
Essex and Suffolk Water’s customers currently use around 155l of water per person every day.
The firm has pledged to spend £1.5bn on its operations in the region between 2025 and 2030, investing around £200m solely into its water supply system over the next decade.
This includes new pipelines to connect its water zones, treated water storage reservoirs, and winter storage facilities which will harvest water from rivers such as the Waveney.
Plans also include a new nitrate removal process which would take effluent reuse from local treatment sites and turn it into drinking water, speeding up the water treatment process.
FEARS FOR THE FUTURE
There are real fears that similar restrictions could be imposed on businesses in other areas of East Anglia.
Paul Simon, Suffolk Chamber of Commerce’s head of public affairs and strategic communications, said water companies need to communicate with local businesses to stop them moving out.
“Water scarcity is a threat to the viability of growing and successful Suffolk businesses,” he said.
“The situation in the Hartismere Water Resource Zone is particularly severe and the restrictions extremely draconian, but these could become the norm across the county without coordinated and purposeful action by all parties.”
The chamber has been bringing water companies and businesses together to help companies adapt to the current water situation and explore any options available to water operators.
Mr Simon added: “This curated approach is vital if region is going to retain and attract business.”
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