Water investment to unlock growth in East of England
Source: gov.uk (2025-03-13)

Environment Secretary Steve Reed visited Cambridge to discuss the region’s urgent water needs.

Residents in and around Cambridge are set to benefit from improved water security and faster development as the government takes action to modernise the UK’s water infrastructure.

Environment Secretary Steve Reed met with key stakeholders in Cambridge today to discuss the region’s urgent water needs. Without urgent investment in water infrastructure and demand reductions, the East of England is expected to face a water deficit of around 600 million litres a day by 2050.

Cambridge, despite its immense potential, has faced barriers to growth due to inadequate water infrastructure. However, with £7.9 billion of investment unlocked over the next five years, key projects like the Fens Reservoir for Cambridge are set to support sustainable growth and ensure resilient water supply in the face of climate change.

Environment Secretary Steve Reed said:

Water is the lifeblood of any thriving city, and securing a sustainable supply for Cambridge is essential to unlocking its full potential to contribute to our wider Plan for Change.

This government is prioritising water infrastructure upgrades, with £104 billion of private-sector investment secured to fund nine new reservoirs nationwide – including the new Fens Reservoir.

Cambridge is a key economic hub, and we’re backing its future by securing significant investment to ensure sustainable development while safeguarding its natural resources.

Environment Agency Area Director Sadia Moeed said:

Protecting the environment and delivering sustainable development can go hand in hand, now and into the future.

The Environment Agency is supporting and facilitating the delivery of the Government’s growth ambitions in the East of England, working alongside local partners.

Our priority is to ensure development is accompanied by infrastructure which delivers a water supply that meets current and future needs of people and the environment.

The Environment Secretary also visited Rede, Suffolk, where Anglian Water is installing 7km of pipeline and a new pumping station at Rede Reservoir. Part of the Strategic Pipeline network, which will span over 300km in total across the East of England, the project will boost regional water resilience and be fully operational by 2030.

Following Ofwat’s approval, Anglian Water has been permitted to invest £794m over five years in supply upgrades, including £154 million for the Fens Reservoir.

The visit marked the end of the week-long ‘Things Can Only Get Cleaner’ tour by the Environment Secretary and Water Minister Emma Hardy to iconic water sites such as Windermere (https://www.gov.uk/government/news/government-ambition-to-end-sewage-discharges-into-windermere), the River Wye (https://www.gov.uk/government/news/uk-and-welsh-government-unite-in-1m-fund-to-transform-river-wye) and Havant Thicket (https://www.gov.uk/government/news/securing-a-sustainable-water-future-for-the-south-east) – England’s first new reservoir in over 30 years.

The Ministers saw examples of how a record £104 billion in private-sector investment will be spent, including AI-led technology to cut sewage spills, water recycling schemes, and creating green energy from sewage sludge.