Water Companies

Debate between Emma Hardy and Rebecca Long Bailey

Monday 8th June 2026 Commons Chamber

[Emma Hardy]

The right hon. Gentleman raises an incredibly important point. One of the things we have been doing through the water delivery taskforce is looking at all the potential barriers in the way of just getting stuff done. That is why it is so important that we have MHCLG on the taskforce alongside DEFRA, because it is about the question not just of financing but of planning. Everybody seems to want reservoirs, but lots of people do not seem to want them to be built—that part of it seems to be the difficulty.

The right hon. Gentleman is quite right. We have had to intervene more to look at where the blockages are, at the problems we come up against when we try to get something built, and at how we as the Government can remove some of them so that we can get on with it. We know the climate is changing—we know we are going to have wetter winters and drier summers—so this is becoming even more urgent.

[Rebecca Long Bailey (Salford) (Lab)]

The Minister knows that for decades shareholder returns have been prioritised over consumers, the environment and infrastructure investment, and when the companies ultimately fail, it is taxpayers who have to underwrite them. Given that all the empirical research shows that public ownership would lower financing costs and bills, improve accountability and pay for itself within seven years, why on earth are the Government still prepared to socialise the risks rather than bring water back into public ownership?

[Emma Hardy]

I thank my hon. Friend for the passion with which she speaks about this issue. I reiterate that my focus has always been on the quickest and most effective way I can deal with some of the problems in front of me. There are questions over how much nationalisation would cost—we have heard them before—and we know that the water companies have £82.7 billion of outstanding debt.

It is always difficult—again, this probably goes beyond my role and into that of the Treasury—to decide on priorities about what we spend money on, but that is not for one moment to give the impression that I am happy with the status quo or that I think the current situation is good, because I simply do not. It is about how we make the most effective change in the quickest way, which is why having set out in the White Paper a transparent process to look at not-for-profit mutuals and other different models is so important.