Prime Minister Andy Burnham is exploring proposals to grant mayors and other local political leaders significant powers over water companies in the UK. This initiative is part of a broader push to bring essential utilities under increased public control and is a key recommendation from Sir Jon Cunliffe's Independent Water Commission last year.
The proposed framework involves creating nine new regional bodies, roughly aligned with the territories of major water firms in England and Wales. These bodies would be responsible for planning, setting objectives, and holding water companies accountable for issues such as customer bills, water shortages, and sewage discharges. The regional bodies would include local government figures, mayors, independent chairs, and representatives from affected sectors like transport and agriculture.
This move comes amidst growing public dissatisfaction with the water industry, marked by steep bill increases for millions of households, chronic underinvestment in infrastructure, widespread sewage spills, and concerns over executive pay. The Consumer Council for Water reported an 84% increase in customer complaints last year, the highest in its 20-year history. While full nationalization is not currently the focus, Burnham aims for "greater public control" to address what he terms a "leaking monument" to privatization failures.
The government, particularly officials within the Department for Environment, Food and Rural Affairs, is reportedly keen on the idea. This policy, expected to be a central part of Burnham's "10-year plan," seeks to restore public trust, strengthen companies' ability to raise private capital by weakening the power of water executives, and incorporate customer feedback through online consultations, similar to Transport for London's model. However, concerns have been raised about the potential for new layers of local bureaucracy.
