Independent Water Commission

Baroness Jones of Moulsecoomb Excerpts

Monday 12th January 2026 Lords Chamber

[Lord Katz (Lab)]

The noble Lord is certainly right to recognise the importance of the recommendation by Sir Jon, in the commission report, of establishing a single powerful regulator for the entire water sector that will stand on the side of customers. He is right that the new regulator needs a wide range of skills, not only in terms of knowledge and understanding of the environment, customer service and regulation but also in terms of financial incentives. In the price review of 2024, we have seen the commitment to more than £100 billion of future investment in water infrastructure. In fact, since Ofwat announced its final determination, water companies have already raised over £2 billion in new equity investment. There is work going on, but he is absolutely right that there is no point having a single powerful regulator that is not able to regulate across the land and across the entire water sector’s activity.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, does the Minister understand the depth of disappointment that a lot of environmental campaigners have felt because the remit did not include taking water out of private hands? There is a general feeling of absolute anger that public ownership was not considered. Does the Minister accept that? I include Feargal Sharkey and myself among those environmental campaigners who are horribly disappointed.

[Lord Katz (Lab)]

I am afraid to say to the noble Baroness that I do not accept that there was widespread public anger that nationalisation was not used as a solution. We have committed to a once-in-a-generation reset of the water sector; we have been very clear that we have no intention of nationalising it. It would cost around £100 billion to do that, it would be immensely disruptive and it would create more problems and more costs than solutions. As a Government, we are determined, as we have already demonstrated through the legislation of the Water (Special Measures) Act and the hard work we are doing with Sir Jon Cunliffe, to get a system that works on the side of consumers and on the side of the environment and not worry about structural nostrums.