Water companies are struggling with strict abstraction limits as England faces its driest July on record and a declared drought. The Environment Agency has imposed restrictions, aiming to reduce licensed water abstraction by 2.7 per cent by 2030 and 18 per cent by 2050, to protect the environment and future water sources. These measures add pressure to companies managing strained supplies after heatwaves.

While companies can apply for temporary "drought orders" to increase abstraction, approvals have been scarce. Southern Water, facing significant abstraction cuts, has applied for a drought order and to abstract more from the River Test, drawing criticism from environmental campaigner Feargal Sharkey, who argues it would harm endangered species. Affinity Water is also finding it harder to meet demand due to abstraction cuts, leading it to rely more on other reservoirs.

The situation is exacerbated by infrastructure issues, including significant leaks and a lack of new storage. Professor Alan Mac Donald suggests revisiting groundwater targets, arguing that groundwater supplies are often available during droughts and could buffer against shortages without impacting river flows. The government acknowledges the "exceptional" rainfall deficit and is working with water companies, emphasizing their need to reduce leaks.