Oral Answers to Questions

Steve Reed Excerpts

Thursday 4th September 2025 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

The previous Conservative Government quite disgracefully let water bosses awards themselves more than £112 million in bonuses that they did not deserve. This Government are putting a stop to that. We have banned the payment of unfair bonuses and brought in new jail sentences for pollution offences. The Tory era of profiting from pollution is over.

[Uma Kumaran]

This weekend, for more than 30 hours, waste water from toilets, sinks and drains flooded the River Lea, affecting local communities and spreading to east London, including the wetlands in Stratford and Bow. Thames Water continues to dump sewage and waste water in our rivers at an alarming rate, all while company bosses pay themselves millions in bonuses. May I thank the Secretary of State for the work that this Government are doing to crack down on that appalling practice, and ask what he is doing to ensure that the British public are not paying for that failure after receiving rising water bills? What is he doing to secure the serious investment that is needed for the health of our rivers?

[Steve Reed]

My hon. Friend is a great champion for her constituents in east London, on this matter as on many others. With her support, this Government have secured a record £104 billion to upgrade crumbling pipes and build sewage treatment works across the country, so that we can cut sewage pollution. We have also ringfenced customers’ money, so that it can never again be diverted away from investment to pay for bonuses and dividends while sewage pollution got worse. That, of course, includes in the Lea valley.

[Sally Jameson]

This summer it was reported that the CEO of Yorkshire Water had received an extra payment from a parent company, in spite of recent admissions that it would not be appropriate to receive a bonus due to the company’s poor performance. Yorkshire Water has committed to improving transparency, but that is of little comfort to my constituents who are facing higher bills. Does the Secretary of State agree that it is wrong that those water bosses receive financial reward, when my constituents are facing higher bills and a shocking performance?

[Steve Reed]

As my hon. Friend rightly says, that payment has outraged customers, and I have asked Ofwat to assess its legality as a matter of urgency. I will not tolerate any company attempting to circumvent this Government’s ban on unfair bonuses through exorbitant salary increases, secret bonuses, payments through parent companies, or any other deception. If Ofwat finds that the rules have been broken, companies will face sanctions, including fines imposed at a level that will deter future abuses.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

State-owned Scottish Water is responsible for the water supply across Scotland. Last week, thousands of residents in the Scottish Borders were left without water for days, and terrible communication by Scottish Water made matters worse. We were facing a public health crisis, as well as an animal welfare crisis. Does the Secretary of State agree that the Scottish Government should undertake a full investigation into what happened and ensure that Scottish Water executives are held to account for their failure to act?

[Steve Reed]

I congratulate the hon. Gentleman on raising that important issue, and I agree with the points he makes. The SNP Government in Scotland should be taking a much tougher line against such situations, as it is not acceptable. Levels of pollution in England are bad enough, but under the SNP in Scotland they are even worse, and the SNP Government should be fully ashamed—[Interruption.]

[Mr Speaker]

Order. Let us carry on. I call Mr Joshua Reynolds.

[Mr Joshua Reynolds (Maidenhead) (LD)]

The public will have been pleased to hear recently about the bonus ban for water company bosses, but they would have been equally surprised to hear that a water company boss in England was awarded a massive pay increase to £1.4 million, with the public being told that that was not a bonus but a two-year long incentive plan. What further steps can the Secretary of State put in place to ensure that water companies are playing fair, when those are the tactics that they use to circumvent the rules?

[Steve Reed]

The hon. Gentleman raises an important point, which has been raised in the House before. That scheme was put in place and relates to years when the Conservative party was in government. That scheme would not be allowed today.

[Baggy Shanker (Derby South) (Lab/Co-op)]

3. What steps he is taking to protect households from significant water bill increases.

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

Customers were hit with outrageous bill increases last year as a direct result of the previous Government’s failure to ensure that water and sewage pipes were properly maintained over the long term. They deliberately imposed a light-touch approach to regulation that let the system crumble, while investment funding was diverted to line water bosses’ pockets, leaving customers to pay the price. Our powerful new regulator will get a grip on the sector and ensure the regular maintenance of pipes, so that hard-working British families are never again left to pay the price of under-investment and weak regulation.

[Baggy Shanker]

In Derby, the proposed water bill increases of about 50% will hit people really hard over the next five years. It is a bitter pill to swallow, because at the same time as hiking bills, shareholder dividends are being increased and water companies continue to pollute our waterways. What assurances can the Secretary of State give my constituents that our Government will tackle such hypocrisy head on and, crucially, protect our residents from the water bill increases?

[Steve Reed]

My hon. Friend is right to advocate so strongly for his constituents in Derby at a time when they are experiencing the cost of living crisis, as others are. I thank him for his support in blocking the unfair, multimillion-pound bonuses that were previously paid to water bosses. By ensuring that customers’ money is spent on upgrading the water system, rather than allowing it to be diverted to bonuses and dividends, he is helping to ensure that the bill hikes that resulted from Tory failure will never happen again.

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

Unbelievably, the Secretary of State has just doubled down, in the House, on the falsehood that he advanced on 21 July on “Channel 4 News” that pollution levels are worse in Scotland than they are in England. I am sure that the Secretary of State does not want to mislead the House. Will he take the opportunity to correct the record—

[Dave Doogan]

Thank you for your guidance, Mr Speaker.

The Secretary of State has inadvertently advanced the same argument that he did on 21 July on “Channel 4 News”. Will he clarify that pollution levels under publicly owned Scottish Water are substantially better than those under privately owned English water companies? Will he recognise that Scottish bill payers pay lower bills and that Scottish Water’s borrowing is sustainable and consistent with the value and quality of Scotland’s water?

[Steve Reed]

The hon. Gentleman is showing why the problem persists—if the SNP does not recognise the problem, there is no way that it can fix it. I have published the data and I stand by it: pollution under the SNP in Scotland is even worse than it was under the Tories in England. He should be thoroughly ashamed of what he is doing to the beautiful countryside of the country that he represents.

[Mr Speaker]

I call the shadow Minister.

[Dr Neil Hudson (Epping Forest) (Con)]

The future of Thames Water is in sharp focus again, affecting millions of people and potentially the wider UK taxpayer. Bizarrely, the third party—along the Benches to my left—led legal action that could have sunk the company. Reform UK is also happy for the company to go under, exposing taxpayers to a cost of billions and pushing consumer water bills through the roof. This Labour Government, in the passing of the Water (Special Measures) Act 2025, repeatedly blocked our Conservative amendment that would have enabled limits to be placed on the amount of money that can be borrowed by water companies.

As we reach a precipice with Thames Water, and given the Cunliffe review’s clear call for improved financial responsibility, will the Government rethink their approach and adopt sensible measures to put water companies on a more stable and secure financial footing to protect water, the environment and the British taxpayer?

[Steve Reed]

The reason that Thames is in the state that it is in is the weak, so-called “light-touch” regulation that the Conservatives imposed on the water companies when they should have been getting a grip. The point beyond that that the hon. Gentleman makes is a sensible one, however, and our reforms to water regulation and indeed to the regulator are intended to ensure that such problems cannot happen again. In the case of Thames, we are of course keeping a very close eye on what is going on with that company. At the moment, it remains viable, but we are ready for all eventualities, should they occur.

[Alison Hume (Scarborough and Whitby) (Lab)]

4. What steps his Department is taking to help protect moorland.

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[Tom Hayes (Bournemouth East) (Lab)]

5. What steps he is taking to help tackle water pollution on the Dorset coast.

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

My hon. Friend showed me the scale of pollution on the Dorset coast and I share his determination to put a stop to it. This Government are fixing the broken sewage pipes that are responsible for this pollution, funded by £104 billion of private investment that we have helped to secure. Over the next five years, that will fund Wessex Water, in his area, to cut storm overflow spills by 43%—a major milestone towards cleaning up for good beautiful places in his constituency, which I had the pleasure of visiting with him, such as Bournemouth beach and Hengistbury.

[Tom Hayes]

I thank the Secretary of State for his answer and for his two visits to Bournemouth. People still talk happily about his visit to the Hengistbury Head Outdoors centre. I met recently with constituents in Bournemouth East who are calling for nationalisation as a way to improve accountability and investment in the water industry. How does the Secretary of State see a path towards nationalisation sitting within his wider efforts to protect our waters?

[Steve Reed]

Nationalisation is not the answer, because it would require handing over more than £100 billion to water company owners that could only be raised through higher taxation or cuts to vital public services. It would also take years of legal wrangling that would see the brakes slammed on investment, causing pollution to get worse and, ultimately, lead to higher bills for customers. This Government are taking the fastest possible route towards cleaner water and fairer bills.

[Simon Hoare (North Dorset) (Con)]

We in North Dorset would love to be talking about ministerial visits from the DEFRA team, but, despite an invitation to the Farming Minister, none have crossed the border to visit.

North Dorset farmers and landowners wish to play their active and fullest part to ensure that, through nitrate neutrality and other farming mechanisms, they are improving water quality to help the rivers that flow to the coast of Bournemouth, Christchurch, Poole and so on. Will the Secretary of State ensure that bodies such as the Environment Agency and others that advise our farmers provide consistent advice in a timely fashion in order to maximise their enthusiasm?

[Mr Speaker]

Adjournment debate required.

[Steve Reed]

I have enjoyed visiting Milton Abbas on many very happy occasions. I agree with the point that the hon. Gentleman makes. We are working with farmers and landowners to ensure that they are getting the support they need to take the kind of action that he talks about. The new regional tier proposed by Sir Jon Cunliffe will give a place where farming and land managers can raise their voices and ensure that the outcomes they can contribute to are delivered.

[Patrick Hurley (Southport) (Lab)]

6. What progress he has made on reducing pollution in bathing waters.

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[Andy MacNae (Rossendale and Darwen) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

As we have heard, this summer has seen wildfires burning across our countryside. I add my thanks to the emergency services, who were out in force to battle those fires, but so too were farmers, gamekeepers and local volunteers who gave up their time and resources to control the fires and help put them out. I pay tribute to all of them for their selfless bravery and community spirit.

The fires came at the end of a long period of drought. Visiting farms this week and earlier in the summer, I saw for myself how food production has been affected. It is clear that further work is required to support farmers to build on-farm reservoirs and irrigation systems that can sustain their businesses through dry periods, and I have invited the NFU to work with me on that. I want to use this opportunity, though, to thank farmers for the outstanding work that they do to feed our country through thick and thin.

[Andy MacNae]

As we move into autumn, flooding is once again on the minds of residents in Rossendale and Darwen. This Government have already made vital commitments to our flood defences, but recently some communities have expressed concern that flood modelling is out of date and is either not fully identifying risk areas or identifying risk areas as high-risk that no longer are. The Environment Agency is aware of that, so will the Secretary of State join me in urging it urgently to prioritise new modelling?

[Steve Reed]

My hon. Friend makes an important and timely point. Through the floods resilience taskforce, we are looking at how we can update the modelling to make sure that all areas that need protection will get the investment to do it, because far too many communities are exposed to the dangers of flooding. That is why we are investing £4.2 billion between 2026 and 2029 to protect our communities and better maintain our flood defences in England.

[Victoria Atkins (Louth and Horncastle) (Con)]

May I join the Secretary of State and everyone across the Chamber in thanking the fire services, farmers and rural communities for their hard work and bravery in tackling the wildfires that we have seen this summer?

I am heartened to discover the Secretary of State’s new fondness for farmers. We will all be listening carefully to his answer to the next question. With 89% of farmers saying that they have paused or delayed investment because of the Budget, and with food prices rising, record farm closures under his watch, and Labour’s own think-tank admitting that the family farm tax needs changing, will he finally do the right thing, put rural communities above his own ambitions and axe the family farm tax?

[Steve Reed]

First, may I welcome the shadow Secretary of State back to the Chamber? It was disappointing that she did not bother to turn up for the water statement; I can only assume that she does not care much about the pollution that her party is responsible for across the country.

When it comes to farming, we are working with the farming sector on a road map to bring it back to profitability. That is the route to ensure that those businesses remain financially viable and successful into the future. It was her Government who left so many farmers on the brink of bankruptcy, so it takes only small problems to push them over the edge. Some 12,000 farms closed under the previous Government. We are working with the sector to make it profitable for the future.

[Victoria Atkins]

I hate to break it to the Secretary of State, but I suspect I have spoken to far more farmers than he has in the past 12 months. They do not believe a word he says, because he betrayed what he said to them before the election about the family farm tax. As for this road map, if farms continue to close—more than half of farmers are thinking of giving up in the next five years because of this Government’s plan—it will be a road map to nowhere. Yesterday, the Governor of the Bank of England told the Treasury Committee that the rise in food prices was due in part to measures in the last Budget placing higher costs on food businesses. In light of that and the terrible summer harvest, will the Secretary of State do farmers a favour for once and rule out a new wealth tax on farmland in the next Budget—yes or no?

[Steve Reed]

The causes of food price inflation include rising global energy prices, extreme weather events that have been affecting harvests, as we have already heard, and global supply chain problems, including the Russian invasion of Ukraine. Those things are affecting food prices right across the country. As part of the road map, we are working with farmers to ensure more supply chain fairness, so that the producer of origin gets a fairer share of the money that is made through the system for the food that they grow. That is the best way in which we can support farms to get their fair share of the revenue that comes in for the food they produce.

[Paul Davies (Colne Valley) (Lab)]

T2. In my constituency, producers such as Longley farm exemplify British quality. Its dairy products are globally renowned. What specific steps is the Department taking to prioritise the purchase and promotion of British produce, ensuring support for domestic farmers, reducing food miles and strengthening the UK’s food security and rural economy?

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[Chris Ward (Brighton Kemptown and Peacehaven) (Lab)]

T7.   In the last few days, I have had a huge number of emails from constituents about continued sewage discharge into our otherwise beautiful seas and the shocking record of Southern Water on this issue. I noted earlier that the Secretary of State said he had been to Bournemouth a couple of times, but can he come a little further down the coast, visit my constituency, and set out what this Government are doing to clean up our waters and hold Southern Water to account?

[Steve Reed]

Well, I was not far away a couple of weeks ago—I was down in Lewes. I congratulate my hon. Friend on being such a powerful campaigner on issues relating to sewage in his constituency. He tells me that he has brought together a group of campaigners. I would be delighted to meet him and them to see some of the problems and talk about how we can start to fix the appalling problems with pollution that the Conservative party has landed us with.

[Mr Lee Dillon (Newbury) (LD)]

T8. We are joined in the Gallery by farmers from my constituency of Newbury. It is the fifth time they have come to the House with the intent of lobbying individual Labour MPs to try to stop the family farm tax. Will the Secretary of State agree to meet the farmers from my constituency or to attend the Berkshire county show in just a couple of weeks’ time, so that he can explain to them directly why the Government believe that having an inheritance tax on farms is the right way forward, rather than protecting the rural economy?

[Steve Reed]

I am always happy to meet farmers. That is why I have visited two farms already this week and sat down with a group of six farmers to talk about their concerns. I am more than happy to make sure that the people the hon. Gentleman has visiting get an appropriate meeting to discuss their concerns.

The Solicitor General was asked—