TOP THREE TAKEAWAYS

1. The UK will need over five billion extra litres of water per day by 2050. Action to build resilience in the rural sector is needed now.
2. The rural sector has the ability to drive solutions based on water reduction, reuse and recycling using technology, nature-based solutions and infrastructure.
3. All business need to plan for the future, undertake a water audit and reduce reliance on stressed water sources.
   
   

Water is life 

The UK will need over five billion extra litres of water per day by 2050¹ in order to support a growing population, food production and environmental protection. The importance of water cannot be overstated, with significant challenges to both quality and quantity.

Currently, water is managed separately between sectors; however, with a finite resource, the future must incorporate collaborative, innovative thinking to create an integrated water management approach. 

In England, the need for an integrated approach has been embraced through the establishment and development of five water resources regional groups – Water Resources North, Water Resources West, Water Resources East, Water Resources South East and West Country Water Resources – with the aim of creating a multi-sector water resources plan. 

The challenge to this approach has been that not all sectors (figure 1) have a water resources management plan, and not all sectors have appropriate funding. Scotland does not have a water resources strategy, which is something Scottish Land & Estates is championing.

Globally, a framework called the 'Integrated Water Resources Management' is being used, with 172 countries reporting on its implementation. However, progress is varied and often limited. Our case study from the Waste and Resources Action Programme (WRAP), see 'The water roadmap', operates at a global level and looks at building water resilience for rural businesses and their supply chains. 

Future stresses on water supplies 

There are three main factors driving water demand: 

1 Population growth

The global population is expected to grow to 9.3 billion (78 million in the UK) by 2050, which will drive demand for public water supply and for other sectors (figure 1). It is estimated a 70% increase in food production will be required, and thus, the associated water demand. 

2 Climate change

UN-Water² states that “climate change is primarily a water crisis”. We are seeing more frequent flooding, drought and water quality incidents. Figure 2 shows the variation in rainfall across the UK in a dry year (2018), wet year (2020) and in comparison to 2023. The government has made water quality and the protection of communities from flooding top priorities. Historically, there has been a lack of support for agriculture in relation to the impact of extreme weather conditions, and we wait to see whether this will change for the future.

3 Environmental demands

The regulatory responsibility for water use falls to the Environment Agency (EA) in England, the Scottish Environment Protection Agency and Natural Resources Wales. Their role is to use enforcement where water quality standards are not met and manage sustainable abstraction for environmental protection and recovery. Additionally, Ofwat and the Drinking Water Inspectorate (DWI) regulate the water and sewerage sectors in England and Wales to ensure that the water companies provide a good quality service and independent reassurance that public water supplies are safe. Around 47 trillion litres of water is licensed from England’s natural resources every year, the equivalent to 18.8 million Olympic pools. Figure 3 shows 65% of the water abstracted in England comes from freshwater surface sources, 27% from tidal waters and 10% from groundwater sources. 

The Environment Act 2021 gives the regulator the power to reduce or revoke abstraction licences where there is the potential of damage to the environment. Affected licence holders will need to seek an alternative source of water, and our advice to rural businesses is to make plans now. We would ask that the licensing system itself is reviewed, a recommendation echoed by the EA. A future system is needed where:

• Water can be abstracted at any time of year, e.g. during high-flow periods following rainfall. 'Excess' water is not only available in the winter. 
• Water is able to be shared by different parties to maximise the use of a licence.

Water in a rural context

Water plays a crucial role across rural businesses. Savills 2,500-acre virtual estate (figure 4) highlights water usage across the estate that comprises several tenanted arable and dairy farms, one poultry business operating a number of sheds, 16 hectares of glasshouses, an average of three residential properties per farm, a farm café, let office space and a small commercial forestry operation. Built assets use significantly less water than the agricultural enterprises, e.g. cropping, but the water source will vary and demand may be met by green water, which we discuss on the following pages. As abstraction licences and weather patterns become more uncertain, the rural sector needs to develop solutions to secure water requirements for the future. Through the use of case studies, we explore some of the ways to reduce reliance on stressed water sources via nature-based solutions, technology and efficiency measures. 

Taking the supply for granted

Do we feel that our ability to turn on a tap and water will appear has undervalued our precious resource? Toulouse in France certainly thinks so; the local authority has instigated an innovative solution to encourage water conservation. They will increase the cost of water to its inhabitants by 42% per m³ in the summer months and reduce the winter cost by 30% per m³.

In England and Wales, Ofwat is due to offer a greater incentive for businesses meeting consumption reduction targets. The Water Matters Conference 2024 predicted a proposal for wholesalers to reduce water consumption by 9% by 2028 and 15% by 2050, against a 2020 benchmark, and the introduction of a 'rising block tariff' in which wholesalers are encouraged to consume less due to incremental unit price increases as more water is used. At the moment, the system is counterintuitive – unit prices reduce as more water is consumed.

^{1 This figure has risen from previous estimates due to updated demand forecasts and environmental information.} 

^{2 UN-Water co-ordinates the UN work on water and sanitation.} 

_{Read the articles within Water: building resilience below.}