Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, with reference to his oral answer to the hon. Member for Waveney Valley of 21 July 2025, Official Report, col 579, on what evidential basis his Department has estimated the cost of bringing water companies into public ownership.

Defra has estimated that nationalising the water industry would cost approximately £100 billion. This is based on the sector’s Regulatory Capital Value (RCV), which was £99.3 billion in 2024 and £106.7 billion in 2025. It reflects the cost of purchasing equity in all water companies as well as the cost of assuming their existing debt liabilities. For more information on the approach taken by Defra to reach its estimate, please see: Nationalising the water sector: how we assessed the cost - GOV.UK.