Suffolk breweries face possible closure over cap on water usage for next decade

• Water limits are holding back firms' growth ambitions, bosses tell ITV News Anglia's Russell Hookey.

Growing businesses say a water company's decision to limit their usage for the next decade has left them forced to choose between closure or relocation.

Essex and Suffolk Water has introduced the moratorium for non-domestic supplies in part of Suffolk as it faces an increase in demand.

Businesses in the Hartismere area claim their plans to expand are now in doubt, as the moratorium limits how much more water they can use until 2033.

The water company said it needed to prioritise supplying water for domestic customers and it was spending £1.5bn to improve the infrastructure in the area.

However, the Federation for Small Businesses said the decision "flies in the face" of the government's pro-growth messages and was "hampering" businesses.

Businesses forced to 'close or move'

Companies were informed of the moratorium through a letter sent by Essex and Suffolk Water, with one of those businesses being Humber Doucy Brewery in Bacton near Stowmarket.

It produces craft beer - and it takes 3.5 pints of water to produce one pint of beer. It is planning to expand, but co-founder Alan Ridealgh said it was difficult to know how much water they might use.

Mr Ridealgh said: "We're committed to growth because we've put a lot of funding into it, so what are we going to do?

"We're faced with closing or moving, so we have been looking into moving, but we don't feel ready for that yet.

"The water company is totally divorced from reality - they've just done it out of the blue. They're the only water company in the country to have done this.

"They should have talked to businesses before putting a blanket cut so we could work together to use less water. If we can't grow we won't become profitable."

If the company was 100 metres further down the road it would be a customer of Anglian Water and not facing the problem, Mr Ridealgh said. Anglian Water said it had no plans to introduce a similar policy.

Nearby, gin producers Heart of Suffolk in Finningham also are affected by the moratorium and said they were disappointed at the lack of consultation.

Ryan Luke, managing director, said: "When we met with [Essex and Suffolk Water] they said they'd contacted all businesses to find out how much water we'd need over the next nine years, but for us that communication never came through.

"They also said there would be access to a water grant where you can access funding for how you can adapt to changing needs, but by the time we found out the grant application process had been closed."

Decision 'flies in the face' of UK's growth plans

The Federation of Small Businesses said water companies "haven't been doing their bit" in maintaining or renewing infrastructure and problems are now "falling on to the shoulders of small businesses".

Candy Richards, development manager, said: "The decision by the water company to effectively introduce a blanket ban on extra water usage has disproportionately affected smaller businesses.

"To be told out of the blue that they can't use extra water is really hampering the growth plans of our small businesses.

"Many are facing the stark reality of having to relocate or stall their growth plans and that is bad for business.

"It flies in the face of any plans to grow our country and our economy, because small businesses are the backbone of our economy. It's fundamental they're not penalised by large water companies who have not got their house in order."

Essex and Suffolk Water 'have to protect water supplies'

Essex and Suffolk Water defended the decision and said it has pledged to improve infrastructure through a £1.5bn investment in a new reservoir and pipelines, as well as leak reduction measures.

Kieran Ingram, water director, said: “While we sympathise with affected businesses, we are forecasting business demand for water to double in our Hartismere area, which covers Eye and surrounding villages.

"We have to protect water supplies to our existing customers, especially to household customers who we have an absolute legal requirement to supply.

"While we still have more work to do, we are definitely improving the amount of water lost to leakage and our operation teams work tirelessly attending reported burst to fix them as soon as possible.

“We did not take the decision to introduce the moratorium lightly, as we understand how new business can boost the local economy and we apologise to those who are affected, but the bottom line is that we have a duty to our existing customers to ensure their water supply is protected.”

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