UK Water Companies: Chinese Financial Influence

Lord Fox Excerpts

Tuesday 15th September 2026 Lords Chamber

[Lord Fox (LD)]

My Lords, the National Security and Investment Act 2021 allows the Government to scrutinise and intervene on certain acquisitions made by companies, including businesses which and investors who could harm our national security. The Act covers 17 sensitive areas in the economy, but although there was much discussion when the Bill was before your Lordships’ House about including critical infrastructure, it was not included in those 17 areas. I thank the noble Lord for bringing this issue up. With what we know today, is it not time to add services such as water to the list so that the Act can be used in full to scrutinise who controls our critical water supply?

[Baroness Hayman of Ullock (Lab)]

As I just mentioned, the water sector is in the National Security and Investment Act. That is mainly because of the essential services that it provides for public health and the economy. There are 17 existing sectors in that mandatory notification scheme, including civil nuclear, energy and transport. We are assessing whether proposed acquisitions pose a national security risk. However, the noble Lord makes an important point, so I am happy that we consider the water industry when we review the terms of that Act.