Water Companies

Debate between Alex Sobel and Emma Hardy

Monday 8th June 2026 Commons Chamber

[Emma Hardy]

The hon. Gentleman raises a really important point, and the short answer is yes. We need clear resilience standards and asset standards, because we do not have them, but, importantly, as he pointed out, those standards need to be fit for the future and not just for today. When we look at what the standards should be, we should think about what will happen to the climate in years to come in terms of overheating and flooding. The hon. Gentleman is quite right: work on that is going on, and he raised an important point.

[Alex Sobel (Leeds Central and Headingley) (Lab/Co-op)]

Minister, we know that our water company, Yorkshire Water, is a dirty business, flushing sewage into rivers such as the Wharfe and the Aire, with children and others getting ill from swimming in them. But is it not also a broken business, with debt more than four times its revenue, while still paying over £50 million to shareholders last year? What financial studies has the Minister done to look at Yorkshire Water’s viability? Is it not time that the people of Yorkshire have the same say over their water company as the people of Wales?

[Emma Hardy]

My hon. Friend is right that we share the same water company. Sir Jon Cunliffe’s commission addressed whether it would be appropriate for the Government to set a level of debt that companies cannot go beyond, because the gearing over the last decade or so has been completely unsustainable. It is making companies act in a way that I do not think is right. That is why the need to look at the debt levels for these companies was included in the White Paper. We need to look at what is a sensible and realistic level for them to hold, to ensure it does not undermine their sustainability or their ability to put customers and the environment first, which should be at the core of everything they do.