Water Sector Reform

6. What steps she is taking to reform the water sector.

8. What steps she is taking to reform the water sector.

The Government will publish a White Paper later this year outlining our vision for the future of the water sector, making the most fundamental reform of our water system in a generation. We are determined to clean up our rivers, lakes and seas to deliver better outcomes for consumers and the environment.

My constituents know the trouble the water industry is in. I have previously raised in this House the matter of bonuses of being given to Yorkshire Water executives in exchange for poor service. What will the Government do to fix the broken regulatory system so that the failures of the past do not happen again?

I thank my hon. Friend for her campaigning on this issue. We recognise the scale of the challenge facing our water system and are taking decisive action to reset the sector. We will create a single powerful water regulator, abolishing Ofwat and ending the fragmentation that led to the abuses of the past. As my hon. Friend refers to, we have already banned polluting water bosses from taking bonuses, which we did early in our time in government with the passing of the Water (Special Measures) Act 2025.

It is crucial that the Government have the powers to crack down on polluting companies, but the Environment Agency’s budget was cut by half by the previous Conservative Government. What will this Government do to make it quicker and easier to fine the companies polluting our rivers with raw sewage?

My hon. Friend is absolutely right. Under this Labour Government, there is nowhere to hide for polluting water companies. We have overseen record fines on water companies and are introducing automatic penalties—like speeding tickets—to ensure that those companies are held to account for every level of offence.

My constituents are fed up. They are fed up of paying rising bills and adhering to hosepipe bans, and of being told to be mindful of how they use their water while leaks go unfixed and water shortages remain. This autumn, people in Mid Sussex came within three weeks of standpipes being needed, despite paying more and more on their bills. Against this torrent of failure, my constituents want to know how the Government plan to create a water industry that can provide for a growing population, rather than lurching from crisis to crisis.

I share the public’s frustration with what has happened in recent years, but I reassure her that we will take decisive action. We have already passed the Water (Special Measures) Act, but we will also be issuing a White Paper later this year and will legislate to ensure that we have better regulation, a better regulator and a better water system for her constituents and those around the country.

In West Dorset, overloaded sewers and outdated infrastructure cause repeated sewage spills. Rainwater enters combined systems, overwhelming capacity and causing them to overflow. The Independent Water Commission recommended pre-pipe solutions to reduce storm overflows. Will the Secretary of State introduce a national rainwater management strategy and require rainwater harvesting on all new homes and renovations?

I thank the hon. Member for his question, and I look forward to working with him on this issue. We will look at pre-pipe solutions in the forthcoming White Paper, which I look forward to discussing with him when we publish it.