Lords scupper Gove move to relax water pollution rules to boost housebuilding Mortgage Finance Gazette

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The government has lost its bid to relax water pollution rules to boost UK housebuilding after a rebellion in the Lords.  

Levelling Up Secretary Michael Gove unveiled his plan to scrap “nutrient neutrality” guidelines last month, which he said would allow an extra 100,000 homes to be built by 2030, delivering an £18bn boost to the economy.  

But last night the House of Lords, an amendment to the Levelling-Up and Regeneration Bill, which would allow the measure, was defeated by 203 votes to 156, a majority of 47.   

These rules were first introduced across the EU in 2017, in an effort to stop developers polluting local wetlands and waterways in protected areas when building homes.  

The government says currently 62 local authorities cannot allow new developments unless builders can prove their projects are “nutrient neutral” in protected areas.  

During the debate, communities minister Baroness Scott said the powers were “necessary and proportionate”.  

She added that the measure had “effectively stalled, or, blocked completely housing development in affected areas” and was “burdensome and expensive”.  

But Labour’s Baroness Jones said removing the guidelines would set a “dangerous precedent”.  

And former Conservative environment minister Lord Deben – who recently chaired the Climate Change Committee – said the amendment was “one of the worst pieces of legislation I have ever seen, and I’ve been around a long time”.  

After the defeat, the Conservative Party said on social media: “Starmer and Labour just voted to block 100,000 homes.  

“Why? Short-term politics over the needs of British families.”  

But new shadow levelling up secretary Angela Rayner said the amendment was a “flawed plan.”   

Rayner added: “We stand ready to sit down with the government, housebuilders and environmental groups to agree on a workable solution to build the homes we need.”  

Because the government introduced its measure at a late stage to the Levelling-Up and Regeneration Bill, which is making its way through the Lords, it cannot try to push through the measure in the House of Commons.   

The Levelling Up department would need to bring the proposal forward in a new bill.