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The government is considering plans that would empower mayors and other local political leaders to take on greater oversight of water companies. Central to this initiative is the proposal by Prime Minister Andy Burnham to establish nine new regional bodies tasked with planning, setting objectives, and holding water service providers accountable for their operations. This concept traces back to a significant recommendation made by Sir John Cunliffe’s Independent Water Commission, published in June of last year.
Water industry reform has been a priority for Burnham ever since his administration began, particularly as consumers in England and Wales continue to grapple with sharp increases in their water bills. Until recently, the discussion on reform lacked clarity, aside from some calls for outright nationalization. While portions of the Cunliffe report have been implemented by the current government under Sir Keir Starmer, the suggestion to create regional oversight bodies was not part of the adopted measures. Nevertheless, officials from the Department for Environment, Food and Rural Affairs reportedly view the idea with interest, although no final decision or timeline for announcement has yet been confirmed.
If instituted, these regional bodies would hold powers to oversee critical elements such as water companies’ expenditures and management decisions relating to billing and sewage discharge. The Cunliffe review states: “This would represent a significant change, and ensure that local voices, customers and experts have stronger authority over companies’ boards’ decisions on investment priorities.” Beyond mayors or local government officials, the boards could include independent chairs, sector experts, and representatives from industries like transport and agriculture, ensuring a broad range of stakeholder perspectives. A source within Whitehall noted that this proposal is one among several ideas under consideration aimed at increasing public control over water services.
Public dissatisfaction with water companies has been rising sharply. Recently, complaints from households to the industry watchdog increased by an unprecedented 84% over the past year, highlighting growing concerns over bill rises and the quality of service. The Consumer Council for Water (CCW) described this growth in complaints as the largest in its two decades of operation, reflecting widespread frustration among customers. This dissatisfaction has been fueled by long-standing issues such as sewage pollution, decades of insufficient investment, and increased strain on the sector due to climate change and population growth.
During his first speech to the House of Commons in September, Prime Minister Burnham criticized the privatization of economic power since the 1980s, identifying the water sector as “a leaking monument to that approach – a country run in the private rather than public interest.” In his broader agenda, Burnham has pledged to give mayors enhanced authority over public services, including social housing, welfare, and education, as part of a 10-year economic transformation plan. This includes granting city region mayors a share of income tax revenue for the first time, aiming to devolve power from Westminster to local governance structures.
The ongoing debate over water policy comes amid record-high water prices and rising public concern. More than 200,000 people have signed a petition urging a national referendum on returning the water industry to public ownership. Although members of parliament involved in the recent debate did not endorse holding a referendum, they largely agreed that the current system is “broken” and requires urgent reform. The strong consensus underscores the widespread desire for change across political divides and among the public
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