UK Water Companies: Chinese Financial Influence

Lord Redwood Excerpts

Tuesday 15th September 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

I do not think that the Government are in denial. Through the White Paper and the Bill that we will bring forward, the Government will look at the best form of ownership for water companies, but it is also really important that we get the right kind of investment. The water industry requires over £200 billion in new investment before 2050 and we have to remember that capital markets are global. If we artificially restrict the kind of investment that we want to see, we will reduce competition and increase costs for customers. It is incredibly important that we get this right, while closing doors to investment that compromises our national security.

[Lord Redwood (Con)]

My Lords, given the very big capital requirements that the Minister has rightly identified, and the need to pay compensation to existing shareholders if the Government wanted to buy it out, is it not the case that the country cannot afford nationalisation of the water industry?

[Baroness Hayman of Ullock (Lab)]

I have expressed concerns previously in your Lordships’ House about the costs of nationalisation, which is why we are looking at the best way forward when we bring forward the new water legislation. I really look forward to hearing what noble Lords have to say about how we move forward.