Independent Water Commission

Lord Roborough Excerpts

Monday 12th January 2026 Lords Chamber

[Lord Katz (Lab)]

I am afraid to say to the noble Baroness that I do not accept that there was widespread public anger that nationalisation was not used as a solution. We have committed to a once-in-a-generation reset of the water sector; we have been very clear that we have no intention of nationalising it. It would cost around £100 billion to do that, it would be immensely disruptive and it would create more problems and more costs than solutions. As a Government, we are determined, as we have already demonstrated through the legislation of the Water (Special Measures) Act and the hard work we are doing with Sir Jon Cunliffe, to get a system that works on the side of consumers and on the side of the environment and not worry about structural nostrums.

[Lord Roborough (Con)]

The Cunliffe report highlighted eroded trust in water industry regulators among stakeholders and has recommended a new integrated regulator. Can the Minister confirm that this new regulator will be fully accountable to the Secretary of State and, by extension, will be fully exposed to parliamentary scrutiny?

[Lord Katz (Lab)]

Absolutely. One of the key parts of Sir Jon Cunliffe’s report is around the importance of setting a strategic direction for the industry, and one of the things that are set out there is the importance of that ministerial and strategic direction. I imagine that the development of that will of course involve both Houses of Parliament. However, it is really important to understand that, in other areas of accountability, one of the important things that Sir Jon recommended was ending the years of water companies marking their own homework by introducing open monitoring. It is important that we see accountability and transparency across the piece.