Mayors May Gain Oversight of Water Companies in Government Reform Plans

The UK government is considering empowering mayors and other local political leaders with oversight of water companies, a move that could establish nine new regional bodies responsible for planning, setting objectives, and holding water firms accountable.

This potential shift, detailed in plans being explored by officials in the Department for Environment, Food and Rural Affairs, aligns with a key recommendation from Sir John Cunliffe's Independent Water Commission, published in June of the previous year. While some of the commission's ideas were adopted by the current government, the proposal for regional oversight bodies was not among them until now. The department is understood to be supportive of the concept.

The proposed regional bodies would be granted authority to scrutinize aspects of water companies' spending and hold executives accountable for issues such as rising customer bills and sewage discharges into waterways. The Cunliffe review suggested this would significantly alter the landscape, ensuring that "local voices, customers and experts have stronger authority over companies' boards' decisions on investment priorities."

Membership of these regional bodies could include a mayor or local government representative, an independent chair, subject matter experts, and other stakeholders representing affected sectors like transport and agriculture. A Whitehall source indicated that this is one of several ideas under consideration to increase public control over the water industry.

A government spokesperson stated, "Our water industry has not been working for people for far too long. We're bringing in tougher regulation, stronger enforcement and greater accountability, so water companies deliver for customers and the environment."

These considerations arise amid growing public dissatisfaction with the water sector. The number of complaints made by households to the industry watchdog surged by a record 84% in the past year, driven by concerns over increasing bills and service quality. The Consumer Council for Water (CCW) reported this year-on-year increase as the highest in its 20-year history, reflecting widespread customer dissatisfaction.

In recent years, public concern has mounted over issues including sewage spills, escalating water prices, and decades of under-investment in the sector. These pressures are further exacerbated by the impacts of climate change and a growing population.

Prime Minister Andy Burnham has previously voiced strong criticism of the water industry's structure, characterizing it as a "leaking monument" to privatization that prioritizes private profit over public interest. He has been advocating for greater mayoral control over public services and budgets, aiming to transfer power from national government to local leaders. Burnham has also proposed granting city region mayors a share of income tax revenue for the first time as part of his broader economic reform agenda.

The debate over the water industry's performance has also reached Westminster. A petition with over 200,000 signatures called for a national referendum on returning the water industry to public ownership. While a referendum was not deemed necessary by participating Members of Parliament, there was a general consensus that the current model requires significant reform.