This report seeks to update Cabinet on the significant progress made by the Cabinet Commission presenting a Strategic Business Case (SBCO) for progressing river restoration and to seek authorisation to further develop an Outline Business Case (OBC) for submission to Defra and Welsh Government for a Phosphate Trading Scheme, encompassed by a binding legal agreement, which has the potential to lead to further steps including a Water Protection Zone in the event that nutrient reduction targets are not met by means of the voluntary scheme.

Cabinet members considered a report setting out the progress made by the Cabinet Commission on Restoring the Wye and seeking approval for further development of an Outline Business Case for submission to DEFRA and the Welsh Government. The cabinet member finance, corporate services and planning introduced the report and explained the background to the establishment of the Cabinet Commission and the progress to date.

The cabinet member highlighted that:

·       The aim of the commission is to develop a strategic plan to restore the river catchment to favourable conservation status, working with the three other councils with responsibility for parts of the Wye catchment;

·       The commission has met four times to receive evidence and information from experts, and reports from officers on progressing the commission’s objectives with government departments, agencies and regulatory bodies;

·       The report sets out the case for exploring more robust monitoring and regulatory options, with a  further progress report to follow in July 2023;

·       Insufficient progress has been made through the nutrient management plan and the report recommends that the plan is significantly revised and a reconstructed nutrient management plan delivery vehicle be proposed;

·       Herefordshire Council unanimously voted to petition the Secretary of State at DEFRA to implement a full Water Protection Zone (WPZ) but this request was refused as being premature or without required justification, so the council needs to make progress by other means;

·       The report sets out options which show potential to achieve nutrient certainty and the recommendations to Cabinet for this meeting seek approval for the next steps to explore, amongst other things, whether there is a willingness and commitment for all stakeholders and agencies to work to achieve a regulated voluntary scheme which is compliant with statutory requirements;

·       Should the necessary progress not be made through co-operation then the regulatory threat of a WPZ remains and the work done with partners and stakeholders will provide evidence to build a robust case and show that we have explored and dismissed the reasonable alternatives;

·       The pollution of the river is damaging for the communities of Herefordshire, its environment and its economy, and on the council through lost revenue from council tax;

·       There is no suggestion that the council should fund a scheme for farmers or assume any of the powers belonging to the regulators and other statutory bodies, the report proposes that the council make some contribution to the work that needs to be done to put a better scheme in place while continuing to encourage and challenge government and regulators to exercise their statutory powers to their full extent;

·       The next steps are to explore whether more regulated options are feasible and deliverable including, as a particular solution, a regulated voluntary scheme across the Wye catchment farming community and a further report will come to cabinet in July 2023.

Cabinet members discussed the report. Some cabinet members did not believe the proposed approach to be the best way forward and argued that the money set aside by the council should be invested in a scientifically based case for a Water Protection Zone. They suggested the proposal for a trading scheme was premature and that the cabinet commission needed to provide its formal report first. In response it was argued that the work proposed in the report would need to be done anyway to gather the evidence to support any future request for a WPZ. The government and statutory bodies are not protecting the rivers as they should be and the council is looking to learn from the Poole example and work with a broad spectrum of stakeholders.  The trading scheme is one of the options to be explored but others will likely emerge over the next few months and will be reported on in the next progress report.

Group leaders gave the views of their groups. It was generally recognised that more work and consultation is needed but views were mixed on best way to achieve improvements. In response to queries it was noted that:

·       The report could be better structured and the learning from this would be applied to future reports;

·       A more structured timetable of meetings for the commission may be needed going forward;

·       The need to see progress is recognised but the complexity of the different options must be explored before a solution can be identified in which everyone can have confidence.

The recommendations were put to the vote and it was resolved by a simple majority that:

a)             Cabinet notes the progress made to date by the Cabinet Commission;

b)             Authority is delegated to the Corporate Director for Economy and Environment to allocate up to £250,000 of the total allocation of £480,000 to the continued work of the Commission, following consultation with the Chief Executive and the Director of Resources and Assurance;

c)             Herefordshire Council be the accountable body where submissions for external funding are successfully secured from partners;

d)             The Chief Executive is authorised to continue the council’s work with stakeholders and to prepare a draft submission considering all potential options to DEFRA and Welsh Government;

e)             The Chief Executive is authorised to work with statutory partners to take forward the Commission’s recommendations for a newly reconstituted Nutrient Management Plan Delivery Board to undertake a critical assessment of the draft submission to DEFRA and Welsh Government, and a revised Nutrient Management Plan; and

f)               Cabinet review further progress made in July 2023.