Rebecca Smith is the MP for South West Devon.
For too long, our national debate has assumed that decline is inevitable. As something to be managed, rather than reversed. We block housing instead of building more homes. We ration energy instead of producing more power. We restrict infrastructure instead of unleashing more growth. And increasingly, we are rationing water on an island famed for its rainfall.
Britain cannot build a prosperous future on a politics of scarcity, which tells the public to consume less, build less, and expect less. This mindset assumes that Britain’s best days are behind us and that the Government’s role is simply to manage decline as fairly as possible.
Central to our plans for renewal of both our party and our nation, the Conservatives must reject this managed decline and instead champion abundance. And, from the food we grow to the data centres we want to attract, securing an abundant supply of water now and for generations to come must be central to this vision.
However, water infrastructure currently takes decades to deliver. If we do not act swiftly, Britain risks sleepwalking into chronic shortages that will damage growth, push up food prices, constrain housebuilding, and undermine national resilience.
As I have seen first-hand with farmers and the Westcountry River Trust in my constituency, water storage, such as ponds, could provide much-needed relief when water is in short supply and play a vital role in irrigating crops during heatwaves. Too often, however, farmers are forced to navigate a regulatory headache to create ponds, on top of facing the financial pressures from droughts, heatwaves, and Labour’s war on rural communities.
The Environment Agency has already tried to block thousands of homes around Cambridge because of water shortages. Meanwhile, water-intensive businesses in my constituency and across England are being told additional supply cannot be guaranteed. Data centres, essential for the future of artificial intelligence, are increasingly constrained by water stress.
At the same time, climate change is making rainfall less predictable. We face wetter winters, drier summers, and more severe droughts. Despite these realities, Britain has not built a major reservoir since 1991. This statistic alone should shame us all.
Rather than respond to rising water demand and greater weather uncertainty by expanding supply and prioritising resilience, Britain instead has constructed a labyrinth of regulators, obstacles, and rules that make almost any meaningful infrastructure project painfully slow, prohibitively expensive, or outright impossible. This makes managing scarcity appear to be the only viable option.
The problem is not a lack of rainfall, expertise, or private capital. It is a regulatory culture built around pessimism, risk aversion, and the assumption that growth itself is the problem. That mindset is embedded most clearly in the EU-derived Habitats Regulations, which increasingly operate as barriers to resilience rather than tools for sensible environmental stewardship.
Wanting abundance is not anti-environment. In fact, scarcity is often what destroys nature. The current framework is failing both the economy and our natural world. Conservatives should be honest about this.
The system we have is littered with perverse incentives that have distorted investment decisions, by encouraging box-ticking compliance over genuine environmental improvement. This bureaucratic rigidity has resulted in water scarcity, leading to bottlenecks for homes, infrastructure, and economic growth. This is decline dressed up as environmentalism.
Conservative environmentalism should be about stewardship, resilience, and abundance. Just as we should strive to supply our economy with the water it requires, we should be striving for biodiversity in abundance, not conserving dwindling quality and quantity of habitats and species.
We must, therefore, replace these EU-era rules and pursue a more flexible, outcomes-based regulatory system that looks at entire landscapes, rather than try to address what is going on in isolated individual sites.
The current system also plans water supply around politically aspirational assumptions and a belief that “there is no longer a strong link between non-household water demand and economic activity.” The rapid growth of sectors such as artificial intelligence, hydrogen production, carbon capture, and gigafactories strongly suggests the opposite may now be true.
And yet, the Environment Agency continues to require water companies to plan future supply on the assumption that the target will be achieved, despite growing evidence to the contrary. This reckless approach creates the illusion of water resilience without actually delivering it.
Successive governments have pursued ambitious demand reduction targets while avoiding the trade-offs required to achieve them. Unable to easily increase supply, such as by building reservoirs, those responsible with delivery reductions in consumption have limited powers to influence demand.
Again, with a clear pressure to act, governments have pursued piecemeal policies that tinker at the edges, like water efficiency standards and product labelling. While striving for water abundance should not encourage unnecessary waste of resources, equally it should not be an excuse for managing scarcity through ever tighter restrictions on demand because it is easier than increasing supply.
A country that cannot provide enough water for new homes, new industries, and future generations is a country that has accepted decline. Conservatives should reject that future because, ultimately, the choice is not between prosperity and sustainability. It is between managing scarcity and creating the conditions for both to flourish.
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