UK Water Companies: Chinese Financial Influence

Lord Sikka Excerpts

Tuesday 15th September 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

My understanding is that one of the recent announcements we have made is that the water industry will be subject to the National Security and Investment Act, which was brought in in 2021.

[Lord Sikka (Lab)]

My Lords, 90% of England’s water industry is foreign owned, including by the Chinese state. The result has been low investment, high bills, raw sewage in rivers, over 1,200 criminal convictions, and harms to nature, health and national security. Everyone knows that public control of the water industry has failed to deliver and that the only way forward is public ownership. Why are the Government in denial?

[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.