Water Sector: Public Ownership

Helena Dollimore Excerpts

Monday 14th September 2026 Westminster Hall

[Helena Dollimore (Hastings and Rye) (Lab/Co-op)]

It is a pleasure to serve under your chairship, Sir Jeremy.

I pay tribute to the campaigners and citizen scientists—some of whom are in the Public Gallery—who have exposed the scale of the sewage scandal. It is only because of them and their campaigning that we are having this debate.

Our water industry is fundamentally broken. I sat with my hon. Friend the Member for Mid and South Pembrokeshire (Henry Tufnell) on the Select Committee and questioned the water bosses, and all we heard was excuse after excuse. We need a fundamental change to protect our failing water infrastructure. That is a top priority for our Labour Government and I welcome the steps that have been made so far to ramp up regulation and get tough on the water companies, but as I will outline, we need to go further.

Nothing enrages the people I represent in Hastings and Rye more than bills going up every year to prop up failing companies, while executives and shareholders try to find ways to evade bonus bans as their companies edge towards bankruptcy. We have already taken important steps, but we must go further to protect vital national infrastructure. In Hastings and Rye, we already see the impacts of the regulation that we introduced: more Environment Agency staff focused full time on monitoring Southern Water, more inspections taking place, and more enforcement notices issued. We are starting to see the results of that work, but there is still more to do. Those of us in the Chamber who favour a co-operative model believe it is the solution that would put people before profit in fixing our broken water industry.

I will talk briefly about the impact of our failing water industry on the people I represent. We have had two major water outages in the past couple of years, one lasting nine days and one five days; there was major flooding in Hastings town centre that ruined people’s livelihoods; and 300 million plastic beads washed up on our coastline—we found out that they came from a Southern Water treatment plant only because we got down on our hands and knees and exposed that scandal. Public health has been compromised and sewage is dumped in our sea regularly. Right now a digger sits on the beach in Hastings, an eyesore, because of Southern Water’s failings. I believe that the solution is to move to a co-operative model, which would be the radical shake-up that this industry needs.

--- Later in debate ---

[Dr Savage]

I absolutely agree that we need to get upstream of the problem, and I assure her that I always try to step out of pubs carefully.

The supposed justification for private ownership was that investors would bring money into our water system. Instead, over those three decades, vastly more money has flowed out to shareholders than shareholders put in. Money went out, infrastructure deteriorated and debt piled up, and now customers are being told that they must pay to put it right. That is what makes the British public and me so furious. The water companies need to come clean and so does the Government.

[Helena Dollimore]

Does the hon. Member agree that some of our water companies operate in extremely murky arrangements? Often, there is a complicated network of different companies that sub-contract from each other, meaning that the customer who pays the bill has no idea what value for money, if any, they are getting.

[Dr Savage]

I absolutely agree—much like our water supply, these arrangements need to be more transparent and stink less.

Ministers have been talking about the forthcoming £104 billion investment programme as though the private sector has suddenly reached into its pockets and found that £104 billion to rescue our crumbling water infrastructure, but it has not. Ofwat has confirmed that that money will come through a mixture of customer bills and yet more borrowing and shareholder equity.