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Mayors to gain powers over water companies in new plan

Government considers nine new regional bodies to oversee water firms following record complaints.

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Mayors to gain powers over water companies in new plan
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Prime Minister Andy Burnham is considering plans to establish nine new regional bodies tasked with overseeing water companies. These proposed organisations would be responsible for planning, setting objectives, and holding water firms accountable.

Background to the proposal

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The concept of regional oversight bodies was a central recommendation in the June 2025 report by Sir John Cunliffe's Independent Water Commission. While some of the commission's ideas were adopted by the current government, the specific recommendation for regional bodies was not. Officials within the Department for Environment Food and Rural Affairs are understood to be in favour of this approach.

The regional bodies would be empowered to scrutinise elements of water companies' spending and hold executives accountable for decisions regarding customer bills and sewage discharges. The Cunliffe review stated this would introduce significant change, ensuring local input from customers and experts carries greater weight in decisions about investment priorities.

Membership of these regional bodies could include a mayor or other local government representative, alongside an independent chair, various experts, and representatives from relevant sectors such as transport and agriculture. A Whitehall source indicated this is one of several ideas being explored to increase public control over water companies.

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Rising customer dissatisfaction

This initiative comes at a time of increasing customer dissatisfaction. The Consumer Council for Water reported an 84% rise in complaints to the industry watchdog over the past year, marking the highest increase in its two-decade history. This surge is attributed to customer concerns and confusion surrounding escalating water bills.

Public concern has grown in recent years regarding sewage spills, rising bills, and what is seen as decades of under-investment in the water sector. These issues are further compounded by the strain from climate change and population growth.

A government spokesperson stated: "Our water industry has not been working for people for far too long. We're bringing in tougher regulation, stronger enforcement and greater accountability, so water companies deliver for customers and the environment."

Broader context of devolution

Prime Minister Burnham has previously expressed a desire to devolve more power to local leaders, aiming to transfer authority from Westminster. He has committed to granting mayors greater control over public services and has outlined a 10-year plan to transform the economy by enabling mayors of city regions to receive a share of income tax revenue.

The debate in Westminster on Monday, following a petition signed by over 200,000 people calling for a referendum on returning the water industry to public ownership, highlighted a broad consensus that the current model is not functioning effectively and requires reform, although a referendum was not supported.

No final decision has been made regarding the proposed regional bodies, and the timeline for any announcement remains unconfirmed.

Questions this report answers

+What is the main proposal for water company oversight?

Prime Minister Andy Burnham plans to create nine new regional bodies to oversee water companies. These bodies would be responsible for planning, setting objectives, and holding water firms accountable for their spending and performance.

+Why is this change being considered now?

The proposal comes in response to a significant increase in customer complaints, which rose by 84% in the past year, the highest in the industry watchdog's 20-year history. There is also growing public concern about sewage spills and rising bills.

+Who would be involved in these new regional bodies?

The regional bodies could include a mayor or local government figure, an independent chair, experts, and representatives from sectors like transport and agriculture. This aims to ensure local voices and customer concerns have stronger influence.

+Has a final decision been made on these plans?

No final decision has been made regarding the creation of these regional bodies, and the timings for any announcement have not yet been finalised. Officials in the Department for Environment Food and Rural Affairs are reportedly keen on the idea.

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Andy Burnham plans new water bodies | Harrow News London