A housebuilding firm responsible for a major Wellington development could be saved from 'catastrophe' by changes to water pollution laws.

The government has proposed scrapping rules which prohibit the dispersal of phosphates in Somerset's waterways.

The regulations, which wee introduced by the EU, were designed to ensure new housebuilding schemes were 'nutrient neutral'.

Phosphates, which are found in human waste, can cause algae blooms when deposited in streams or rivers, disrupting the ecosystem and potentially harming wildlife.

But the rules, which the government described as 'misguided and overbearing' have made it very difficult for construction firms to build new houses. In place across 62 local authority areas, nutrient neutral rules have blocked development of 145,000 homes, according to the Home Builders Federation.

The restrictions caused acute difficulty for CG Fry & Son, a housebuilding firm responsible for the 650 home Jurston Farm development in Wellington.

In May last year the company warned that the regulations could prove catastrophic, after they forced work on the site to a crawl with around 200 of the planned 650 homes built.

The old Somerset West and Taunton Council enforced a ruling by Natural England that the homes threatened the Somerset Levels, an important ecological site protected by nutrient neutrality regulations.

A solicitor acting for CG Fry said at the time: "This would have a catastrophic impact on the business and those that it employs both directly and indirectly through the supply chain and sub-contractors.”

But the government's intention to scrap the law as part of an amendment to the Levelling up and Regeneration Bill has given the firm fresh hope that the project can be completed.

David Lohfink, Land and Planning Director for CG Fry said if the change is made, it will keep their employees in work and provide homes for people who need them. He said: "We are giving the Government’s announcement a cautious welcome until we see more details. 

"We, and others in the industry, have been calling for legislative change for over two years now and so it is encouraging that the Government has also realised that mitigation through creating nature-based solutions (wetlands etc) is simply not delivering and not unlocking housebuilding. 

"Our welcome is a cautious one as it could take many months for the Government to get the proposed amendment to the Levelling Up Bill through the Commons and Lords even with Labour’s support.  Then there might we be a number of challenges from wildlife and environmental groups."

But some conservation groups have hit out at the move, with the chief of the Wildlife Trust, Craig Bennet, branding it a disgrace. He said: "In May, June and July, the Government made promises to the British people and to Parliament that they would not lower environmental protections or standards. But just a few weeks later they are planning to do precisely the opposite. They lied – this is a disgraceful move which undermines public trust in this Government. 

"Make no mistake – this is a license from the Government for the commercial housebuilding lobby to profit from the pollution of our rivers. Vague offers of money as compensation are not the same as a legislative requirement – and even the existing rules are extremely modest.  “The Government has made repeated pledges that they won’t weaken environmental standards and committed just 8 months ago to halve nutrient pollution by the end of the decade. This is another broken promise and makes clear that the Prime Minister would rather look after the interests of developers than the environment – money talks.  

“These rules are about preventing pollution, not housing. Piling on pollution from developers into rivers already suffocating from poo and agriculture pollution, will only mean greater pressure is put on farmers to make bigger and faster cuts to nutrient pollution.” 

But Mr Lohfink hit back at the claims, saying: "It is also worth mentioning that the scaremongering from the Wildlife Trusts and Greenpeace is misplaced and inaccurate.  This will not spell pollution disaster for rivers because new housebuilding contributes only a tiny percentage of all run-off entering the water system. 

"In any event, all effluent from housing schemes goes to wastewater treatment works (WWTWs) and not directly into rivers!  Under pressure from the Government, larger WWTWs are already being upgraded under the current capital works programme (through to the end of 2024) and they will be improved again by 2030 due to requirements in the Levelling Up Bill. 

"Those improvements would take far more phosphates out of the system than new housebuilding ever puts in. Notwithstanding the speed with which the Government might be able to do this, or not as the case may be, it has the potential to allow us to get on with schemes that are currently stalled. 

"That means we can keep direct employees employed and also invest into contractors and sub-contractors.  It also means that we will be able to get building again, sell some houses and get some much-needed income back into the business.  This has to be good news for the economy generally and for those desperately in need of housing (and contrary to popular opinion, there are many)."

The government says their plan will enable the building of a further 100,000 houses across the country and deliver and £18 billion to the economy.