(1)In the Water Resources Act 1991, after section 61 insert—
(1)This section applies where—
(a)a relevant licence is revoked or varied on or after 1 January 2028 in pursuance of a direction under section 54 or 56, and
(b)the ground for revoking or varying the licence is that the Secretary of State is satisfied the revocation or variation is necessary—
(i)having regard to a relevant environmental objective, or
(ii)to otherwise protect the water environment from damage.
(2)A “relevant licence” is a licence to abstract water that—
(a)is to abstract water in England only, and
(b)is to remain in force until revoked.
(3)Where this section applies, no compensation is payable under section 61 in respect of the revocation or variation of the licence.
(4)In this section the “water environment” means—
(a)any inland waters (including, in relation to a lake, pond, river or watercourse that is for the time being dry, its bottom, channel or bed),
(b)any water contained in underground strata,
(c)any underground strata themselves,
or any flora or fauna dependent on any of them.
(5)In this section “relevant environmental objective” means an environmental objective within the meaning of whichever of the following is applicable—
(a)the Water Environment (Water Framework Directive) (England and Wales) Regulations 2017 (S.I. 2017/407);
(b)the Water Environment (Water Framework Directive) (Solway Tweed River Basin District) Regulations 2004 (S.I. 2004/99);
(c)the Water Environment (Water Framework Directive) (Northumbria River Basin District) Regulations 2003 (S.I. 2003/3245).
(1)This section applies if a relevant licence is varied in pursuance of a direction under section 54 on or after 1 January 2028 so as to reduce the quantity of water the holder is authorised to abstract.
(2)A “relevant licence” is a licence to abstract water that—
(a)is to abstract water in England only, and
(b)is to remain in force until revoked.
(3)No compensation is payable under section 61 if—
(a)in each year during the 12 year period ending with the relevant date, the quantity of water abstracted in pursuance of the licence did not exceed 75% of the quantity of water the holder was authorised to abstract in that year, and
(b)the ground for varying the licence is that the Secretary of State is satisfied the variation does not reduce the quantity of water the holder is authorised to abstract to a level below that which the holder reasonably requires.
(4)In subsection (3) the “relevant date” is the date on which the notice of the proposals for varying the licence was served on the holder of the licence.”
(2)In section 27 of the Water Act 2003 (withdrawal of compensation for certain revocations and variations), after subsection (3) insert—
“(4)This section does not apply in respect of a licence revoked or varied on or after 1 January 2028 if the licence is a “relevant licence” within the meaning of section 61ZA of the Water Resources Act 1991.”
(3)Omit paragraph 30(4) of Schedule 8 to the Water Act 2014.