Govt opens door for action on water companies

With the UK’s water market in crisis, government has moved to create eight regional sector-specific councils to give communities a greater say, also pledging to empower Mayors through a strengthened Water Bill.

The Department for Environment, Food & Rural Affairs said that the new bodies will bring local leaders, customers and businesses together to set the priorities for their specific region, helping to shape spending on investment in water and flood infrastructure.

Defra said that the new system will change a situation whereby local voices have been unable to influence programmes in areas where, for example, sewage discharge has disproportionately impacted local tourism.

Mayors will also receive new powers through the strengthened Water Bill to hold water companies to account for their performance.

Tracy Brabin, Mayor of West Yorkshire, said: “The privatisation of water has been a disaster for our region, with household bills set to rise by over 40% after years of underinvestment in infrastructure to line the pockets of wealthy shareholders and executives.

“I’ve long called for directly-elected Mayors to be able to hold water companies to account, influence their operations, and direct the money raised from fines to support those communities hit hardest by illegal sewage dumping.

“Through this new regional water council, we will do everything we can to ensure that Yorkshire Water finally puts people above profit and helps us build a greener, more affordable region with cleaner rivers and lower bills.”

Prime Minister Andy Burnham said: “I know how desperate people are for change when it comes to water. I share their frustration at seeing sewage and pollution blight our rivers, lakes, and seas, while decisions about their local areas are taken miles away.

“That’s not right. So for the first time, local people will have a real say over what they need from their water company, whether that is cleaning up polluted rivers, building new reservoirs or protecting homes from floods.

“That is what moving power closer to communities looks like. Making sure local voices are heard and local priorities come first.”

Defra said that existing regional partnerships have already shown the way ahead, singling out Greater Manchester’s Integrated Water Management Plan, which has brought together planning, regulation and investment, with improved drainage helping support town-centre regeneration.

Local leaders have been asked to submit proposals on how they want to run the new bodies, with a deadline set at the end of this year.

Each council will then draw up a plan setting out the biggest pressures on its region’s water system, the choices that need to be made and the public and private investment that can help address them.

With water companies coming under near-universal criticism for under-performance – this week saw them collectively record the lowest scores since the Environment Agency started ranking performance in 2011 – measures of any kind seem likely to be welcomed.

Environment secretary Dame Angela Eagle took the step of setting clear expectations for the next price review, warning water companies they must provide better value for money.

Government said it is pushing ahead with reforms to overhaul a system in which “shareholders never lose and customers never win”, with water companies being “held to higher account with new powers for automatic fines, and the introduction of criminal liability for water bosses who cover up or hide sewage spills”

Further details on the Government’s approach to the water industry will be set out in the 10-year plan for Britain, to be published later this year.

Mayor of the East Midlands, Claire Ward said: “Water is fundamental to our communities, our environment, and our economy – and decisions about our water should reflect the needs of the people and places they affect. People rightly expect clean rivers, secure water supplies, and better protection from flooding – but feel unable to influence those things.

“Giving Mayors and communities a stronger voice means we can push for cleaner rivers, greater resilience to flooding and drought, and the investment our region needs to grow. This is a positive step towards a water system that works better for local people.”

Mayor of Greater Manchester Bev Craig said: “For too long, water in this country has been managed in a fragmented, unaccountable way that provided shareholder profit over public good. These reforms are an important step forward, giving Mayors a stronger voice to shape investment around local priorities and hold water companies to account for delivering for our residents.

“In Greater Manchester, we know first-hand the impact flooding and dry weather can have on our communities. We need a more joined-up approach that works with nature and responds to local needs. That’s why, through our Integrated Water Management Plan, we are showing what can be achieved when that approach is taken and partners work together.”

Mark Lloyd, chief executive of The Rivers Trust, said: We’ve long been calling for a regionwide systems planning approach to how our water is managed, and it’s encouraging to see the government recognise that this is needed in today’s announcement.

“We look forward to working with local leaders to shape what this looks like in practice, including strategic plans that integrate water management identifying solutions and funding across sectors, via the Catchment-Based Approach. This will help ensure we can deliver rivers fit for the future and a resilient water system that works for communities, and protects us from the economic damage of pollution, flooding, drought and biodiversity decline.”