Tim Farron

It is as privilege to serve under your guidance, Dr Allin-Khan. I say a big thank you to my hon. Friend the Member for Harrogate and Knaresborough (Tom Gordon) for securing this debate and leading it so ably. I also make a little apology to my hon. Friend the Member for Taunton and Wellington (Gideon Amos) for clearing my throat while he was speaking. I was not doing so to make him shut up and sit down—I am not the Speaker. I genuinely had a frog in my throat. I remember the Water (Special Measures) Act 2025 well. I genuinely enjoyed being on the Bill Committee with Members here and others. There are lots of good things in it, but overall the Liberal Democrat view was that it felt like incremental change when more radical reform was needed. All the same, it included some real positives, including provision to ban bonuses for the senior executives of failing water companies. Yet, as we have heard from multiple sources, water companies are now making a mockery of that legislation. We have heard about some of those already, but let me run through some examples. Southern Water’s chief exec’s pay has doubled to £1.4 million via a “two-year long-term incentive plan”. Wessex Water’s chief exec and chief financial officer both got an extra £50,000 undisclosed from its parent company. As we have heard, Thames Water tried it on—21 senior managers were set to be paid a total of £2.46 million in retention payments. In perhaps the most explicit example, as set out by my hon. Friend the Member for Harrogate and Knaresborough, the chief executive of Yorkshire Water received £1.3 million from the holding company, Kelda Holdings. Those are clear and obvious examples of water companies trying to perhaps abide by the letter of the law, if they can get away with it, while completely and utterly flouting the spirit of it. It is totally predictable. Outrageously, Ofwat have either signed off many of these cases or just shimmied and said, “None of our business. We’ve got no powers to do it”—a reminder that it is high time it was abolished and replaced with a more powerful regulator.