Water Sector: Public Ownership
Debate between Neil Hudson and Jeremy Wright(1Â week, 4Â days ago)
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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.