
Water regulation should be overhauled, review recommends
The much-anticipated final report from the Independent Water Commission, led by former Bank of England deputy governor Sir Jon Cunliffe, outlined 88 recommendations to the UK and Welsh governments to turn around the ailing industry.
The Government-commissioned team was tasked to carry out the largest review of the sector since privatisation in the face of widespread public anger over pollution, bills and bosses' bonuses, although ministers ruled out nationalising water companies.
Water minister Emma Hardy told broadcasters on Monday that the system is 'broken', but did not commit to how many of the 88 suggestions would be accepted by Whitehall.
The report, published on Monday morning, recommended far-reaching changes to the way the water system is regulated as it called the current landscape 'fragmented and overlapping'.
For England, proposals include abolishing Ofwat, which oversees how much water companies in England and Wales can charge for services, and the Drinking Water Inspectorate, which ensures that public water supplies are safe.
The report also advises removing the regulatory roles of the Environment Agency and Natural England, which monitor the sector's impact on nature, such as companies illegally dumping sewage into waterways.
Instead, a 'joined-up' and 'powerful' single integrated water regulator should be established, according to the recommendations.
In Wales, Ofwat's economic responsibilities would be integrated into Natural Resources Wales, the review said.
Ms Hardy told BBC Breakfast that ministers would be taking 'a proper look' at the paper 'all the way through the summer'.
Asked if all the recommendations would be made law, she told the programme: 'What we'll do is we'll have a proper look at it all the way through the summer and the intention is that we're going to introduce a White Paper to spell out exactly what we're going to do on water reform.'
Ms Hardy said that the Government would 'introduce a water Bill next year, which will change the law', but added: 'Exactly how many out of the 88 we're going to do or not going to do, then we'll work that out in the next few months.'
The current system has faced intense criticism for overseeing water companies during the years they paid out shareholders and accrued large debts while ageing infrastructure crumbled and sewage spills skyrocketed.
Author Sir Jon said the review has 'tried to attack the problem from all sides' but warned that bills are going to rise by 30% over the next five years.
'There are some inescapable facts here,' he said.
'The cost of producing water and dealing with our wastewater is going up.'
Sir Jon later told Times Radio that regulators have failed to work together to make the sector deliver and blamed the Government for not giving clear direction.
'It's the failure of Government to balance out all the different pressures on water,' he said, adding that firms 'need to perform better' and 'be funded to invest'.
The Government backed the commission's findings, with Ms Hardy saying consumers have been 'failed time and time again'.
Speaking on Times Radio, she said 'root-and-branch reform' is needed to fix the crisis and told listeners the Government is considering a piece of primary legislation to deliver many of the proposed changes.
Ms Hardy also described trust in the water industry as at 'the lowest ever level' and criticised executives for handing out pay rises and bonuses.
'Everyone knows the system is broken,' she said.
'And they give themselves huge pay rises.'
However, the minister also ruled out supporting Government intervention to cap pay in the private sector.
Ms Hardy said: 'I don't think as Government we should say what private companies should pay.
'But I will say – read the room. Look how angry and furious people are.'
Other key recommendations in the review include:
– Expanding the role of the voluntary Consumer Council for Water into an ombudsman to give stronger protection to customers and a clearer route to resolving complaints.
– Significant improvements to environmental regulation, including the process where companies collect and analyse wastewater discharges they make into waterways, by introducing more digitalisation, automation, third-party assurance and inspections.
– Tightening oversight of water company ownership and governance through measures such as new regulatory powers to block changes to water company ownership and 'minimum capital' requirements so that companies are less reliant on debt.
– Introducing legislative reforms to better manage public health risks in water, recognising the many people who swim, surf and enjoy other water-based activities.
– Fundamentally resetting economic regulation, including a new 'supervisory' approach that supports tailored decisions and earlier interventions in water company oversight.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Reuters
21 minutes ago
- Reuters
Trump says US is close to reaching a trade deal with China
TURNBERRY, Scotland, July 27 (Reuters) - U.S. President Donald Trump said on Sunday his administration was close to reaching a trade deal with China, but gave no other details. "We're very close to a deal with China. We really sort of made a deal with China, but we'll see how that goes," Trump told reporters at the start of a meeting with European Commission President Ursula von der Leyen in Scotland.


Sky News
21 minutes ago
- Sky News
US and EU agree trade deal, says Donald Trump
The United States and European Union have agreed a trade deal, says Donald Trump. The announcement was made as the US president met European Commission chief Ursula von der Leyen at one of his golf resorts in Scotland. Mr Trump had said the main sticking point was "fairness", citing barriers to US exports of cars and agriculture. He went into the talks demanding fairer trade with the 27-member EU and threatening steep tariffs to achieve that, while insisting the US will not go below 15% import taxes. For months, Mr Trump has threatened most of the world with large tariffs in the hope of shrinking major US trade deficits with many key trading partners, including the EU. In case there was no deal and the US had imposed 30% tariffs from 1 August, the EU has prepared counter-tariffs on €93bn (£81bn) of US goods. Ahead of their meeting on Sunday, Ms von der Leyen described Mr Trump as a "tough negotiator and dealmaker". And she had called for a rebalancing of bilateral trade worth billions of dollars between the vital partners.


The Guardian
21 minutes ago
- The Guardian
The Guardian view on talking in class: the writers speaking up for oracy education are right
Two years ago, Sir Keir Starmer enthused about teaching speaking skills. So schools campaigners were understandably dismayed when oracy – otherwise known as speaking and listening – did not appear in the interim report of the curriculum review for England headed by Prof Becky Francis. Peter Hyman, the former New Labour adviser who became a headteacher, has been a key figure behind the revival, over the past decade, of an idea developed in the 1960s. Steps to embed the importance of verbal communication in education have already been taken, with more than 1,000 schools working with the charity Voice 21, and a parallel project in Scotland. The hope expressed by children's authors and others last week is that its absence from the draft report was an oversight which will soon be rectified. The task before Prof Francis's commission is a daunting one, with reformers of all kinds looking to it for solutions. An evidence call attracted 7,000 responses, with the future of special educational needs provision, and a wish to reduce exams, among key issues raised. But it should be clear to the panel, and to ministers, that oral learning also matters. One reason is the rising number of children arriving in primary school with speech and language skills below the expected level. While some pupils catch up later, others need specialist help. Communication difficulties are one reason for the increase in the number of education, health and care plans (EHCPs), which set out what such support entails. The reasons for such complex changes are not yet fully understood, although the pandemic has had an impact. The challenge of artificial intelligence, in relation to university studies as well as schools, is another factor behind a renewed emphasis on talking. Given the easy availability of technological tools to aid writing, it is arguably more important than ever that people are equipped to share ideas and knowledge through speech as well. In many European countries oral examinations are far more common, in schools as well as universities, whereas in the UK 'vivas' are mostly reserved for postgraduate studies. In foreign language learning, the importance of speaking is taken for granted. But while oracy already features in the maths and science curriculum, as well as in English, it is often marginalised. The tricky task of reformers is to alter teaching practice so that more weight is placed on verbal communication, without making this yet another assessment hurdle to be cleared. For its champions, the core of oracy education is the ability to make connections. They want young people to be able to express themselves, and point out that this is a vital life skill – for example, in job interviews and the kinds of public‑facing work that seem least likely to be taken over by machines – for which school should prepare them. Big gaps in confidence about public speaking have long been recognised among the most glaring social inequalities. This doesn't mean that everyone should aspire to be a debating champion. Different accents, personalities and ways of relating should be valued, not ironed out. But if our schools are to keep pace with our frenetically changing world, it is surely right that they should maximise the facility for language, which is part of what makes us human.