Sewage plant move halted after funding withdrawn

The relocation of the treatment plant was supposed to allow for a new district to be built in the north-east of Cambridge

A sewage treatment works will not be moved to green belt land near a village after government funding for the relocation and development was withdrawn.

Anglian Water was given permission to replace its current Cambridge facility, near Milton, with a new plant on land known as Honey Hill, close to Horningsea.

However, Cambridge City Council said the government had now confirmed "funding will not be made available to support the delivery of Anglian Water's Waste Water Treatment Plant relocation".

Anglian Water said the decision was "disappointing", but the government said cost projection increases made the plan "unaffordable".

The water company said: "Our teams are reviewing all options to increase capacity to support growth at our existing treatment works in Cambridge."

The Development Consent Order (DCO) to relocate the Waste Water Treatment Plant was approved by the government in April 2025.

The treatment works were being moved to make way for new homes in the north-east of Cambridge.

The council said the Ministry of Housing, Communities, and Local Government (MHCLG) made its decision to withdraw funding from the Housing Infrastructure Fund after costs of the relocation increased "significantly as a result of rising costs of materials and labour and disruption to global supply chains, an increase that MHCLG said was unaffordable".

Hundreds of people and groups submitted objections to the planning inspectorate about the environmental impact of the works

The council added: "As a result of this decision, Cambridge City Council and Anglian Water's proposals for the new 'Hartree' development on the current site, which would form the heart of a proposed new district in North East Cambridge, will not be able to be delivered."

David Barnetson, programme director at Anglian Water, said: "Whilst it's disappointing that the project won't now go ahead, we're committed to supporting Cambridge and the wider area through its rapid projected growth, whilst continuing to protect customers and the environment.

"Our teams are reviewing all options to increase capacity to support growth at our existing treatment works in Cambridge."

In a statement, MHCLG said: "It is vital that taxpayers' money is used responsibly, and cost projection increases have made the relocation proposal unaffordable, with the additional £400m now required beyond the budget available.

"We are committed to ensuring Cambridge has the housing and water infrastructure it needs to reach its full growth potential as we deliver on our Plan for Change."