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1、 The Cost of Water Scarcity Research Report 1 CONTENTS 3 Executive Summary 7 Chapter One:Cost of Supply Shortfall 11 Chapter Two:AI 17 Chapter Three:OxCam 19 Chapter Four:Conclusion 21 Methodology 2 Executive Summary In January 2025,the Chancellor referenced the importance of addressing water scarci

2、ty as part of a flagship growth speech1,stressing the role of water as an enabler of development and growth.The long-expected approval of major water supply projects is a welcome step and will increase water capacity across England,including in regions of water scarcity.Importantly though,the major

3、supply interventions referenced by the Chancellor are long-term projects-in some cases they will not come online until 2039.The earliest of Englands new reservoirs will be Havant Thicket in Hampshire2,although it is not due to open in 2031.The 150bn litre reservoir near Abingdon in Oxfordshire wont

4、come online until 2039 at the earliest3.In contrast,the Governments growth strategy is firmly rooted within this parliament and the next.Crucial targets such as clean power 2030,the construction of 1.5 million homes,Invest 2035(Modern Industrial Strategy),and the AI Opportunities Action plan are nea

5、r-term strategies.There is an urgent window through which the Labour Government needs to deliver as much new infrastructure,housing and commercial growth as possible,rightly focussing on this as a means to kickstart growth.These plans and others-which boost ambition for development in many areas-hav

6、e serious implications for water use across England.This is particularly true because much of the ambition is focused in London and the South East,where productivity is highest,but where water scarcity is a serious issue already,for example in some parts of the Oxford-Cambridge growth corridor(OxCam