Water Sector: Public Ownership

Jeremy Wright Excerpts

Monday 14th September 2026 Westminster Hall

[Josh Newbury (Cannock Chase) (Lab)]

It is a pleasure to speak with you in the Chair, Sir Jeremy.

Since being elected, I have heard repeatedly from constituents about flooding, sewage discharges and failures of basic water infrastructure. My constituency is served by Severn Trent Water and South Staffordshire Water—double the problem, some might say. Recently, I met South Staffs Water after concerns about the installation of meters without what many customers felt was adequate notice. The crux is that customers feel that they have zero influence over the decisions affecting them, and that companies do not seem to explain clearly why decisions are taken.

I heard from constituents in Chadsmoor, for example, who have had to put up with water leaking out at incredible rates all around their properties and dangerously high water pressure for 11 months following the installation of meters. Whatever the ultimate cause, however, the refusal of the water companies to take responsibility for finding fixes is just another example of why their customers have lost trust.

On the Environment, Food and Rural Affairs Committee, as my hon. Friend the Member for Mid and South Pembrokeshire (Henry Tufnell) said, we grilled the chief executives of nine water companies and looked at many issues. Crucially, however, the corporate culture that has taken hold in the sector is so divorced from the lives of customers that it is really to blame for a lot of what we are discussing. Despite already knowing that public confidence was in tatters and that the sector was up sewage creek without a paddle, we were shocked by what we heard.

For me, questions of governance are as important as ownership. Who has control? Who carries risk? How is investment financed? What voice do customers have? The Government have recognised that the broken status quo cannot continue. Powers have been strengthened and Ofwat is to be replaced with a new unified regulator, but given the mammoth issues in the sector, we should ask, as so many have today, whether that is enough.

We cannot assume that public ownership would resolve all the issues. We should remember that some pre-privatisation water boards were failing their customers too. That is why, as a member of the Co-operative party, I hope that the Minister will look further at empowering customers and introducing mutual structures and co-operative principles. Our constituents rightly demand greater control over something so fundamental to their lives. Water is different from almost any other service, because we cannot take our money elsewhere. The test of the Government reforms should be simple: when people turn on their tap, look at their bill or walk by their local river, do they feel that the system is working in their interests? If the answer is no, we should have the courage to change it.

[Sir Jeremy Wright (in the Chair)]

I call Becky Gittins. [Interruption.] Sorry, I have the wrong name on my list. I call Sarah Hall.

[Sarah Hall (Warrington South) (Lab/Co-op)]

Thank you, Sir Jeremy; it happens. It is a pleasure to serve under your chairmanship.

I support public ownership of our water industry. Water is an essential public service, and it should be run in the public interest. People in my constituency cannot suddenly decide that they have had enough of United Utilities and switch to another water company. They pay their bills because they need the service, and they should be able to expect it to work for them. In reality, however, across the country, that is not what is happening. After years of neglect, failure to upgrade infrastructure, sewage dumping in our waterways and skyrocketing bills, people have frankly had enough. We have spent decades trying to regulate these monopolies, so that they behave somewhat like a public service, but it is clear that that simply has not worked.

Across the wider water system, responsibility is divided between organisations, Departments, agencies and authorities, leaving people struggling to find out who will put a problem right. On new year’s day last year, families in Warrington had water coming into their homes, and when water is coming through the front door, they do not want an organisational chart; they just want to know what happened and what someone is going to do about it. The system that we have, which has been bolted together over the years, does not reflect how closely all those things connect. That is where we need to change the way we think.

I want to see a publicly owned water company that works holistically across the whole system. A long-term public programme would give businesses certainty about the work coming in. A steady programme of work would give British firms the confidence to invest, take on apprentices, and develop skills and technology. We must use any change in the ownership model to change the way that the whole water system works, so that it is transparent, puts profits back into the crumbling system and ends the dumping of sewage in our waterways.

The Prime Minister has spoken about stronger public control of essential services, and I welcome that, but in water, public control has to mean more than regulating private companies more closely. We have been doing that since privatisation. Regulation alone cannot decide what the company is ultimately there to do or whose interests should come first. Every one of us depends on water. I believe it should belong to the public and be run for the public good.

[Sir Jeremy Wright (in the Chair)]

I apologise again to the hon. Lady. I call Darren Paffey, I think.

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[Josh Dean (Hertford and Stortford) (Lab)]

It is a pleasure to serve with you in the chair this afternoon, Sir Jeremy.

I want to speak this afternoon about the River Stort, one of the globally significant chalk streams that runs right through my constituency. It is a place where families walk, where anglers spend their weekends, and where countless residents connect with nature. It delivers enormous social, recreational and environmental benefits for our community, but at the start of the month, raw sewage was again discharged into the Stort navigation in a spill that lasted more than eight hours, leaving dead fish and visible pollution in its wake.

I have been requesting a meeting with Thames Water to discuss protecting the Stort since the start of the year, following hundreds of hours of sewage discharges. It has repeatedly failed to engage with that process, only agreeing to meet with me this week after I said that I would effectively turn up at one of its sewage treatment sites to demand an explanation. That is not good enough.

We know that, whatever Thames Water says when I meet it later this week, the truth is that the privatised water industry is failing in its duty of care to our environment, and that privatisation has been a failure. There is simply no other way to put it. We were told that private ownership would drive investment, efficiency and better outcomes, but too often, we have seen the opposite.

As others have said, water is not a luxury; it is an essential public service. We therefore need a system that puts the public interest before shareholder returns, investment before extraction, and environmental protection before corporate profit. To my mind, the only credible path forward is to call time on a failed system and move to a model of public ownership of our water industry. We should start by bringing Thames Water into special administration now. The pollution of our rivers and waterways cannot continue. For the sake of the River Stort, for communities across the country and for future generations, we must take this opportunity to choose a different path.

I am grateful to the Minister for taking the time to meet me earlier this year regarding Thames Water and the River Stort. As I said, I will be meeting Thames Water later this week, so I would be very grateful if she set out in her response what message she would deliver to Thames Water were she in my position, and whether she would consider meeting me again to discuss these repeated failures.

[Sir Jeremy Wright (in the Chair)]

With gratitude for his patience, I call Lloyd Hatton.

[Lloyd Hatton (South Dorset) (Lab)]

Thank you, Sir Jeremy. As we have heard from many Members today, the privatised model in the water sector has, to put it mildly, completely and utterly broken. For so many of my constituents, this really does feel like the biggest scandal of the 21st century, with water companies continuing to profit while water users and bill payers are left footing the bill for crumbling infrastructure, water shortages and disgusting sewage spills.

It is safe to say that this issue really matters to my constituents in South Dorset. With Chesil beach, Ringstead bay, Lulworth cove, Durdle Door, Old Harry Rocks and Studland, wherever people look across South Dorset, they will find a world-renowned coastline. Of course, South Dorset has been a popular holiday destination for some two centuries now: sailors and windsurfers gravitate to Portland, young families flock to Weymouth and Swanage, and walkers and nature lovers alike regularly make their way across the Isle of Purbeck. Our coastline is central to our lives, and central to our local economy as well.

I suppose my constituents have a simple message for the Minister, and also for the new Prime Minister. First, overhaul the toxic and self-serving corporate culture that has been allowed to permeate the water sector. Secondly, make it clear that this Government believe that polluting comes with a price. Thirdly, begin that urgent work of reviewing the model of ownership for the water industry.

We must now look at alternative ownership models. Whether that be municipal control, mutuals, not-for-profits, full nationalisation or a Government bond-backed public utility, there are so many options on the table. What my constituents and the tens of thousands of people who have signed this petition have made clear is that they want to see action; they want to see that move to public ownership without further delay.

I look forward to hearing from the Minister in her winding-up remarks, but please can we consider those options? My constituents are clear: they want better value for money, they want a system that protects the environment and public health, and they want to have greater and much more meaningful public control of our water industry. That must be at the core of this Government’s work. Then, finally, we can stop the spills.

[Sir Jeremy Wright (in the Chair)]

I thank the hon. Gentleman and all Back-Bench speakers for managing a very restrictive time limit.

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[Dr Hudson]

I am not giving way. [Interruption.] I am just giving hon. Members some facts about where the problems—

[Sir Jeremy Wright (in the Chair)]

Order. The hon. Gentleman has made it perfectly clear he is not giving way. All points of view in this debate must be heard, and heard respectfully. If the shadow Minister is not giving way, there is little point in continuing to bob unless he changes his mind.

[Dr Hudson]

Furthermore, the previous Conservative Government’s landmark Environment Act 2021 introduced significant changes to how water quality is managed and monitored in England and Wales. The Act mandates enhanced reporting, monitoring and treatment compliance measures from businesses. It also establishes long-term goals to limit pollution and protect natural water resources from wider range of potential pollutants.

I am sure that, in considering what action the current Government have taken, the Minister will cite the Water (Special Measures) Act 2025—I was on the Bill Committee shadowing her, and I really appreciated her constructive work. It is encouraging to see the current Government adopt some of the measures the previous Government had already introduced, such as banning water company bonuses for bosses if the company had committed serious criminal breaches that damaged the environment. However, it was disappointing that they failed to support the constructive amendments the Opposition tabled, including to ringfence funding from enforcement fines for bespoke water restoration funds; to guarantee that companies fix the environmental damage they cause locally; to require Ofwat to create rules on financial reporting in its renumeration and governance rules; to reduce consumer bills if companies were hit with enforcement fines; and to ensure that companies do not leverage too much debt. Those were sensible, constructive amendments that the Government voted down.

Indeed, there is a recurring pattern of the current Government attempting to claim credit for measures introduced by the previous Government. The current Government have repeatedly claimed to have secured £104 billion of investment in the water system, but £93 billion of that had already been submitted by water companies in October 2023—under the previous Government.

The Independent Water Commission published its final report in July 2025. It was a comprehensive document containing 88 recommendations. Since then, the Government published their water White Paper in January 2026. In May 2026, the King’s Speech included the promise of a clean water Bill. Given that there has been a change in Prime Minister since then, I would appreciate clarity from the Minister about whether the Government plan to proceed with special administration orders for water companies such as Thames Water, as was first suggested. Furthermore, are they going to do that as bespoke individual actions or as part of a nationalisation programme? Will that form part of a clean water Bill? Can she confirm when we will see that clean water Bill come before Parliament?

A well-functioning, properly regulated water system is achievable if there is the political will to make it happen. The public want change, as has been proved by the petition today. His Majesty’s official Opposition are ready to work constructively with the Government on ensuring that that is done for the benefit of people right across the country.

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[Sir Jeremy Wright (in the Chair)]

I am grateful to the hon. Gentleman and to everyone who has spoken. I also thank those in the Public Gallery for attending this evening. I know some of you had to be patient to wait for a seat, so thank you for that.

Question put and agreed to.

Resolved,

That this House has considered e-petition 762640 relating to a referendum on public ownership of the water sector.