Dear Constituent,
Thank you for contacting me about the water industry.
I am aware that privatisation of the water sector has delivered around £200 billion of investment through private finance. This country would not have seen this level of investment if the water industry were in public ownership. The investment has delivered a range of benefits to customers and the environment, including world-class drinking water, excellently classed beaches and improved customer satisfaction, as well as two-thirds reduction in leakage.
I am of the view that renationalisation would be a backward step that would cost the taxpayer, reduce investment, and stifle innovation. Since privatisation, supply interruptions to customers have decreased five-fold, leakage has been cut by a third, and pollution in our rivers has significantly decreased, with 80 per cent less phosphorous and 85 per cent less ammonia. In addition, our bathing waters continue to improve, with 90 per cent being classified as “good” or “excellent”, an increase from 76 per cent in 2010. I hope the Government works to increase this percentage.
As you may be aware, the Government's independent review of the water industry was published on 21 July 2025. The review outlines 88 recommendations, and represents one of the most detailed examinations of the water sector since privatisation.
Indeed, there is much in it that I cautiously welcome, including the merger of the regulators. To echo the comments made by my colleague, Robbie Moore MP, Shadow Defra Minister, in response to the publication, His Majesty's Official Opposition stands ready to work with the Government on serious reform. We will support any action that genuinely holds water companies to account, delivers cleaner waters and protects the public from paying the price of corporate failure.
However, disappointingly, since entering office the Secretary of State for Environment, Food and Rural Affairs has watered down the ambition set by the last Government. For example, the Government has announced that it will cut sewage spills by 50 per cent by 2030 against 2024 levels. However, plans submitted by the last Government were already set to cut sewage spills by 45 per cent against 2021 levels, a tougher reference base. The Government’s new pledge would therefore actually see an additional 20,000 discharges of sewage in our rivers, compared with existing plans. The Secretary of State has failed to explain why, after 88 recommendations and a year-long review of the sector, he has decreased sewage reduction targets rather than ramping them up.
I was pleased that the previous Conservative Government introduced a ban on bosses’ bonuses and I welcome the Government’s decision to uphold this. As a result of the last Governments action to introduce this measure (The Water Special Measures Act 2005) criminal investigations into water companies are quadrupling the number of water company inspections.
The Government will be held to account on its actions. However, after a year in office, I am concerned that the Government has made almost no substantive progress on the issues facing the water industry.
Thank you again for taking the time to contact me.
Sincerely,
