“Time for radical action”, Shipley MP calls for major reform to water industry

Shipley MP Anna Dixon has urged the Government to take strong action against “failing water companies like Yorkshire Water,” as ministers today announced a significant overhaul of the industry's regulation. 

Speaking after Environment Secretary Steve Reed confirmed this morning that Ofwat, the water industry watchdog, would be abolished and replaced with a new regulator, Ms Dixon said: “The creaking and leaking infrastructure, current drought restrictions, and continued sewage dumping in our rivers like the Aire and Wharfe are strong evidence of a failing industry. 

“I welcome today’s report and urge the Government to go further and take this opportunity, as companies fail and go into special administration, to strengthen public control, and put them in the hands of citizens.”  

The Shipley MP's comments come just days after Parliament's Public Accounts Committee, of which Anna Dixon is a member, published a comprehensive report calling for the government to act with urgency to strengthen oversight of the sector. 

She added: “It is time to take radical action, not only to merge the regulators but to restructure the failing companies.  

“Customers will otherwise continue to pay eye-watering bills to private companies that will continue to put profit before the stewardship of our precious water resources. 

“At last year's general election, I campaigned in the Shipley constituency on a pledge to tackle sewage dumping in the River Aire and River Wharfe, and I am absolutely committed to delivering on the promise.” 

Today's announcements from the Labour Government come after the release of Sir Jon Cunliffe’s report on the UK’s water sector. The report includes 88 recommendations aimed at transforming the water industry in England and Wales. These recommendations focus on enhancing consumer protection, strengthening environmental regulations, and improving oversight of water company ownership and governance. 

The Government has also committed to bringing in a Consumer Champion water ombudsman to support customers, cutting sewage pollution from water companies in half by the end of the decade, and making our rivers the cleanest they have been since records began. 

Earlier this year, the Labour Government also passed the Water (Special Measures) Bill, which, among other reforms, banned bosses of underperforming water companies from receiving bonuses, gives stronger enforcement powers to regulators, and created greater executive accountability with water companies.