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Fears water rationing will hit firms' growth plans

Ben Schofield/BBC A bottle of Humber Doucy beer and an empty half pint glass, which also has the brewery's name and logo on it. Both are sitting on a metal table in the brewery's warehouse. Brewing machinery can be seen in the background.Ben Schofield/BBC
Suffolk's Humber Doucy Brewing Company is one of the companies told not to use more water

Businesses in a "seriously water-stressed" area have been told not to use any more water than they currently consume.

No new business connections will be approved in the zone, centred on the town of Eye in central Suffolk.

Firms were "carrying the burden of water rationing", according to one lobby group.

Essex & Suffolk Water said it was investing in new infrastructure and facing an "unprecedented" rise in population.

A map showing three of Suffolk's water resource zones. Shown are Hartismere, Northern/Central and Blyth. Hartismere has the town of Eye almost in the middle.

The company wrote to businesses in the Hartismere Water Resource Zone over the summer, informing them of the policy.

The "moratorium", the letter said, meant the water company would be "unable to agree" to "new mains water connections" for "non-domestic purposes".

It added that it would also not agree to "increase supplies" for existing business connections.

"Consequently, for the time being, you should not plan to increase your mains water use if it is for non-domestic purposes," the letter said.

The policy is due to last until 2033.

The BBC first reported on it in August last year. Since then businesses have been hearing how it may affect them.

Ben Schofield/BBC Alan Ridealgh, standing in his brewery's brewhouse, looking straight to camera. He is wearing a grey T-shirt, with Humber Doucy written on the chest. His arms are folded and he has short, grey hair. A large wooden container is seen on the left of frame, while in the background are three metal containers, which are used in the brewing process. The walls are white corrugated metal.Ben Schofield/BBC
Alan Ridealgh said receiving the letter from the water company was "hugely concerning"

Alan Ridealgh, the co-owner of the Humber Doucy Brewing Company, based in Bacton, near Stowmarket, said the letter was a "shock".

Mr Ridealgh, 67, started the business with his son in 2019. He said it was "still in start-up phase" and was increasing production "weekly".

"Water is 99% of beer, so it's incredibly important.

"To be told you can't use any more water is devastating," he said.

The policy meant the company was faced with "closing down or moving".

It was, he added, "hugely concerning".

Ben Schofield/BBC Two large, old wooden barrels sitting on top of two pallets. They are both inside the brewery's brewhouse. They are dark in colour and have blue writing on their lids, though they are both lying on their sides. Yellow strapping is holding them in place. Brewing equipment can be seen in the background.Ben Schofield/BBC
Humber Doucy had hoped to expand its business and brew more beer

"After this length of time we've put a lot of money into this business and a huge amount of effort.

"The fact that it's got to this stage is appalling."

Ryan Luke, the owner of Heart of Suffolk Distillery, also of Bacton, also received the letter.

He said growth plans were "at risk of being halted" because they would not be able to use more water.

"I think the reasons behind it are completely understandable - there is a shortage of water and we need to be quite mindful of that," he said.

Ben Schofield/BBC Ryan Luke is looking directly at the camera. He is wearing a dark grey, collared T-shirt, which is unbuttoned. Part of a Heart of Suffolk Distillery logo is visible on the chest. In the background are bottles of spirits on a shelf and some distilling equipment. Ryan has a stubbly brown beard, and short brown hair and blue eyes.Ben Schofield/BBC
Ryan Luke owns the Heart of Suffolk Distillery and fears his plans to grow the company could be affected

But he added the "final nature" of the letter was a "bit of a kick to the system".

Mr Luke, 31, said he had looked into shipping additional water to the distillery but that did not seem to be a "sustainable" option and would have a "cost associated with it".

Cranswick Country Foods runs a poultry processing plant in Yaxley, near Eye, and wants to build an animal feed mill next door.

To get permission, it will have to show it can supply its own water.

Plans published by the company show it wants to dig its own reservoir 2.8km (1.7 miles) from the facility. That would be fed by water from the River Waveney, another 3.7km (2.2 miles) away.

The water would be used in the factory, treated and then piped into the River Dove.

Ben Schofield/BBC Candy Richards is looking direct to camera, sitting in front of a bar with several bottles of beers and spirits arranged on top. Dried hops are hanging on the wall behind her. Candy is wearing a cream jacket over a yellow top. She has shoulder length blonde hair and blue eyes.Ben Schofield/BBC
Candy Richards represents small businesses in the affected area

Cranswick would not say how much the proposals may cost but said it would need a "significant investment".

Candy Richards, from the Federation of Small Businesses, said for companies that plan "months and years" ahead, Essex & Suffolk Water's policy was "really worrying".

"It's incredibly worrying to think that actually we're in a position where water companies are having to ration water.

"But what we know is that for businesses there isn't the same level of protection as there is for households.

"So small businesses are essentially carrying the burden of water rationing."

Ben Schofield/BBC Kieran Ingram is looking directly at the camera, wearing a blue quarter-zip fleece with the Essex & Suffolk Water logo visible. He is standing in front of a large sign that also bears the company's name. He has dark hair and eyes and is unshaven. He is standing in an open-plan, indoor space. There are several rows of empty chairs visible over his shoulder.Ben Schofield/BBC
Kieran Ingram said Essex & Suffolk Water was "sympathetic" to businesses affected by the policy

The Environment Agency labelled the whole of the East of England as "seriously water stressed".

A plan published by Water Resources East in December said without "urgent action" the region "will face severe water shortages".

Essex & Suffolk Water said it was forecasting a 22% increase in its population over the next 25 years, which was around 5,000 extra people. Business demand was forecast to double in the Hartismere zone.

Kieran Ingram, the company's group water director, said: "When we looked at making sure have we got enough water for everyone, the answer is 'no', simply we don't."

He accepted the supplier was "prioritising domestic customers over businesses" because supplying to homes was a "life-essential service".

The company planned to invest £1.5bn in Essex and Suffolk between 2025 and 2030.

In Suffolk that will include new pipelines to connect up all the water resource zones, new storage reservoirs and a water reuse scheme near Lowestoft.

Mr Ingram said it was "unfortunate" that the "moratorium" could mean some businesses have to "explore other alternative solutions elsewhere".

"I understand that might mean they have to grow in other parts of the country for the moment," he said.

While Mr Ingram said the company was unlikely to police the new policy and that it "put a lot of trust into our customers", he added that it could see customers' water use through their meter readings.

He added the company was "sympathetic" and the policy would give it time to "build resilience into the future and make sure we can keep up with that growth".

"We want to see investment into the Essex and Suffolk region like everybody else does.

"We want to make sure we're working together to make sure that we can protect our water sources and we protect the environment, not only for today but into the future as well."

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