The UK government suffered a significant defeat in Parliament on Wednesday as plans to relax EU-era restrictions on water pollution to facilitate homebuilding were voted down. This uncommon rebellion took place in the upper chamber, the House of Lords, with the opposition Labour Party leading the charge in a vote to remove existing “nutrient neutrality” regulations.

The government has argued that easing water pollution rules could pave the way for the construction of up to 100,000 new homes by 2030. However, this claim has been met with skepticism and dispute from opposition parties.

Labour’s Nick Thomas-Symonds emphasised that the decision shouldn’t be framed as a choice between environmental conservation and homebuilding. He stated on BBC radio, “Don’t pretend it’s a choice between looking after our environment and building more houses, because it isn’t.”

Typically, a defeat in the unelected House of Lords would send the proposal back to the elected House of Commons for another vote. However, due to the manner in which the government introduced the plan, it will now need to be reintroduced as part of a new bill.

Labour’s deputy leader, Angela Rayner, criticised the government for attempting to score “cheap political points with a flawed plan” and argued that it had failed in its endeavour.

On the other hand, senior Conservative minister Michael Gove contended that Labour’s actions had thwarted “the dream of homeownership for thousands of families.”

The current rules, a legacy of the UK’s EU membership, stipulate that 62 local authorities cannot approve new developments unless projects in protected areas can demonstrate “nutrient neutrality.”

The government is facing mounting pressure to increase the country’s housing supply, particularly following warnings earlier this year that housebuilding could plummet to its lowest level since World War II. The construction industry has attributed this situation to the perceived over-strict enforcement of EU environmental regulations.