Dr Neil Hudson

Labour came into government promising major reform of England’s water sector, but progress so far has been slow. The Water (Special Measures) Act 2025 was largely a rebadging of many Conservative reforms. During its passage, we tabled many sensible amendments, including ones to ringfence funding from enforcement fines to a bespoke water restoration fund; to guarantee that companies fixed the environmental damage they caused locally; to require Ofwat to create rules on financial reporting in its remuneration and governance rules; to reduce consumer bills if companies were hit with enforcement fines; and to ensure that companies did not leverage too much debt. Sadly, the Government failed to support those amendments and missed the opportunity to increase accountability. We on the Conservative Benches have been clear: no one wants to see water companies such as Thames Water collapse. Although water supply would continue, failure would expose taxpayers to billions of pounds of liabilities and drive customer water bills sharply upwards, without addressing the underlying issues. Yet we have seen the third party in this place lead legal action that could have pushed Thames Water to the brink, and both they and Reform appear relaxed about the consequences for consumers and the public purse. Government have to be prepared to step in if a company fails, but that should be a last resort, so can the Minister update the House on the current situation at Thames Water? Last week, this House again debated further unacceptable water outages from South East Water. With further hot weather expected, what action are the Government taking to ensure that water supplies are not disrupted again and that people, businesses, schools, hospitals and livestock owners will have sufficient water? Turning to the wider systemic issues in the water sector, can the Minister update the House on progress towards delivering new reservoirs and other strategic water infrastructure? Finally, can the Minister explain how the Government are tracking investment commitments across the sector?