What Does The 2026 Drought Mean For Business Water Supplies?

England’s water situation has become an increasingly important issue for businesses across the UK during the summer of 2026, which is set to be the hottest on record. 

The National Farmers’ Union (NFU) responded to the announcement that seven areas of England had officially entered drought status, warning that farmers and growers urgently need secure and reliable access to water.

Since then, drought conditions have expanded. By August, 71 per cent of England was classified as being in drought, while no part of the country was considered to be in normal status.

The NFU has also highlighted the pressure that prolonged dry weather is placing on public water supplies, private water sources and businesses. While agriculture is particularly vulnerable to water shortages, the implications extend much further. 

For businesses that rely on a consistent water supply, the current situation is a reminder that water management and supplier choice should be part of long-term business planning.

Why is drought a concern for commercial water users?

Drought does not simply mean that there is less rain. Extended periods of hot, dry weather can affect rivers, reservoirs, groundwater and other water sources, increasing pressure on available supplies.

At the same time, demand can rise during periods of extreme heat. The NFU has warned that increased demand on public water supplies can increase the risk of low pressure and water outages for businesses. 

Although the weather has now turned cooler with heavy rainfall in some parts of the country, the Environment Agency explains that on average August rainfall was only 34 per cent of the average. Most rivers are below normal capacity, while reservoirs are less than 60 per cent.

An added complication is that when rain falls onto hard dry ground, water soaks in less quickly and may instead become run-off, increasing the risk of flooding. It is estimated that months of above average rainfall is needed to relieve current water shortages. 

Private supplies, including boreholes, can also come under pressure as water levels fall. For businesses, interruptions to water supplies can have practical and financial consequences.

A manufacturer may need water for production or cleaning. A hospitality business needs reliable water for kitchens, bathrooms and laundry. Offices, healthcare premises, schools and retail businesses all depend on mains water for everyday operations.

For water-intensive businesses, the potential impact can be considerably greater. This makes it important for businesses to understand not just how much water they use, but where it comes from, what they pay for it and how resilient their current supply arrangements are.

Could drought affect your commercial water costs?

Drought can create additional operational pressures for businesses, particularly where water availability affects production or requires businesses to introduce additional measures to manage consumption.

However, drought does not necessarily mean that a business has to accept inefficient water use or simply pay more.

The UK’s deregulated business water market gives eligible businesses the opportunity to compare commercial water suppliers and choose a retailer that may better suit their requirements.

Switching supplier will not change the physical water entering your premises. The underlying water network remains the same. However, a retailer can provide different levels of customer service, billing arrangements, account management and water-efficiency support.

This makes comparing business water suppliers worthwhile even when there is no immediate problem with your existing supply.

What can businesses do to improve water resilience?

The NFU has called for greater investment in water storage, more flexible approaches to abstraction and better communication between government, regulators and water companies. It has also called for risk registers identifying vulnerable business water users.

Businesses can take a similar proactive approach by looking at their own water resilience.

Start by reviewing your current water consumption. Are there areas where water is being wasted? Are leaks being identified quickly? Do you have accurate information about when and where water is being used?

Water monitoring and auditing can help identify opportunities to reduce unnecessary consumption, which can be particularly valuable during periods of water stress.

Businesses should also consider whether rainwater harvesting, water recycling or other efficiency measures could reduce their reliance on mains water.

For some organisations, having better data is the first step. Automated Meter Reading (AMR) technology, for example, can provide more detailed information about consumption and help identify unusual patterns that could indicate leaks or unexpected usage.

Should you compare commercial water suppliers now?

The current drought is a useful reminder that water should not be treated as an unlimited resource.

Even if your business has experienced no disruption, reviewing your current commercial water arrangements could identify opportunities to improve billing accuracy, customer service, consumption monitoring and overall water management.

Businesses should consider:

• How much water do we use?
• Are we confident our bills are accurate?
• Could we reduce consumption?
• Are leaks being detected quickly?
• Do we have suitable water-efficiency measures in place?
• Does our current supplier provide the level of support we need?
• Have we compared the commercial water market recently?

For businesses that have not reviewed their water arrangements for several years, the answer to the final question may be particularly important.

Building a more resilient approach to water

The NFU’s response to the drought highlights a wider issue: water resilience is becoming increasingly important for UK businesses.

England has already experienced multiple periods of drought in recent years, and the NFU has pointed to increasingly frequent and intense extreme weather. Businesses cannot control the weather, but they can control how effectively they manage their water.

That could mean investing in monitoring technology, reducing unnecessary consumption, investigating alternative water-management solutions or simply making sure the business is getting the right support from its current retailer.

For eligible businesses, comparing commercial water providers is a straightforward way to review the options available in the market. Switch Water Supplier can help businesses compare commercial water suppliers and find an arrangement that better fits their needs. 

With water resilience becoming an increasingly important business consideration, there may be no better time to review your current water supply arrangements.