Minister's speech at British Water Conference

Water Minister Emma Hardy delivered a keynote speech at the British Water Annual Conference in Coventry

Good morning, everyone. It's a real pleasure to be here.

I'd like to begin by thanking British Water and Severn Trent for bringing us together.

I'd also like to thank Liv for her opening remarks and for Severn Trent's leadership in the sector. Their continued commitment to environmental performance – including achieving a 4-star rating from the Environment Agency for the sixth consecutive year – is a clear example of what can be achieved when ambition meets action. It's a record that deserves recognition, and it sets a high bar for all of us.

But as Liv rightly said, this isn't about individual success. It's about restoring trust in the sector.

The conference theme - “Better together” – is not just a slogan. It's a recognition of something fundamental: no individual part of the system can solve the challenges facing our water sector alone.

Looking around this room, I see the people who will make the difference.

Utility leaders managing complex networks that serve millions. Regulators holding the system to account. Engineers and innovators designing the solutions we desperately need. Environmental champions fighting for our rivers and waterways. Supply chain partners delivering on the ground, day in, day out.

This is an incredibly important and exciting time for the water sector.

Real progress is being made. Yet we all know there is much more to do.

Bringing people together to share best practice will enable the sector to deliver the real change this country needs to see. I want to support this however I can.

I have already seen so much innovation and collaboration in the industry. And one of my favourites, I mention frequently was the chance I got to see Northumbrian Water's ‘Pipebot Patrol', which was made possible through the joint working of water companies, drainage specialists and researchers at the University of Sheffield.

For those who might not have met the water company's ‘Pipebot Patrol' – they are basically putting WALL-E in the sewers in Northumbrian waters to clean up all of the pipes there, and I absolutely loved it.

I have also heard about the impressive work enabling fatbergs to be transformed into biofuel and biodiesel, and I thought that was really exciting.

And positive strides in making our water system more resilient for the future, through delivery of nature-based solutions and pre-pipe interventions.

I'm keen to understand how government can better support this innovation and positive action and support collaborative working.

We know that for too long, the water industry has been held back by inconsistent regulation, underinvestment, short term choices, and poor strategic direction.

It has been left ill-equipped to meet the demands of climate change, a growing population, and sustainable growth.

The reason why this needs to change and why this matters is for three reasons

Firstly, because water is an essential public service. Current and future customers need to have faith in the system that serves them.

Secondly, because a functioning and resilient water industry is essential to unlock growth across sectors: building the homes we need, serving other essential industries.

And thirdly, because water is a fundamental part of our natural environment and we are all wholly dependent on it. No part of our economy can operate without it and safeguarding it as one of the most important assets we depend on is vital, and is a duty we owe to future generations.

To deliver PR24 and the investment needed, we need to attract a huge scale of private capital, government and regulators must work together to strengthen market confidence.

Since Ofwat published its final determinations for PR24, the sector has already raised over £2 billion in new equity.

The water sector remains a strong investment opportunity, offering long-term value and stability. However, I acknowledge investor concerns – some companies have not always acted in the public interest, and Moody's has downgraded the regulatory environment twice in the past decade, highlighting inconsistency and lack of strategic direction.

But through our reforms, this Government will ensure regulation is stable, predictable, and fair, moving away from short-term decisions and recognising the unique challenges faced by individual companies. Our goal is clear: a water sector that is financially resilient, operationally effective, and attractive to investors.

Delivering for customers means ensuring that the investment we've just discussed translates into fair bills, better service, and a cleaner environment.

We know that people are facing a cost-of-living crisis, and it's vital that the sector shows it can deliver value for money while also investing for the long term.

Affordability and customer protection are central to delivery. In addition to our consultation on reforms to WaterSure, the strengthened charging powers through the Water (Special Measures) Act 2025, and updates to the Guaranteed Standards Scheme regulations, this Summer we committed to creating a new water ombudsman with legal powers to protect customers in disputes with their water company. This is part of our intention to put customers at the heart of water regulation.

Delivery also relies on properly resourced regulation. The Water (Special Measures) Act gives regulators, particularly the Environment Agency, the strongest enforcement powers in over a decade. These include new cost recovery powers, which allow the Agency to recover the costs of enforcement from the companies responsible, not the taxpayer.

These measures ensure that our regulators have the capacity, capability, and authority to hold water companies to account and to protect the environment effectively.

Ultimately, delivery is about outcomes. It's about cleaner rivers, fairer bills, and visible improvements that restore public trust. And to achieve that, government, regulators, and companies all must play their part.

Looking to the future, planning is what will ensure this progress is sustained, setting long-term direction for the sector.

The government will respond to Sir Jon Cunliffe's recommendations in a full White Paper, and we will be seeking your consultation on this. This will set out our vision for a reformed water sector that delivers better outcomes for customers, investors, and the environment.

We're committed to fundamental reform of the UK water sector. As part of this, we will establish a single, powerful regulator – bringing together the roles of Ofwat, the Environment Agency, Natural England, and the Drinking Water Inspectorate.

It will be created through new primary legislation – the Water Reform Bill – which we aim to introduce early in this Parliament.

Until then, existing regulators will continue their duties, supported by enhanced powers under the Water (Special Measures) Act. We'll also take early steps to improve coordination, including joint enforcement efforts to align regulation and delivery.

But planning isn't only about governance it's also about ensuring our water system is resilient and sustainable for generations to come.

Water companies plans already include nine new reservoirs, eight desalination plants, seven water recycling schemes, and multiple new transfer projects between regions. Collectively, these represent a significant steps in scale and ambition, around £8 billion in investment between 2025 and 2030 alone.

In addition, one of government's key initiatives is the Water Delivery Taskforce. Just last month we announced that changes to abstraction and efficiency standards have allowed us to unlock the development of 21 thousand new homes in North Sussex.

As chair of this taskforce, I intend to work with the sector to ensure that the commitments set out in their business plans are delivered and that regulations support investment in improvements rather than preventing it.

We also recognise that water security depends not just on supply, but on reducing demand. The government has set a statutory target to cut per-person water use by 20% by 2038, and we are backing Ofwat's requirements for companies to cut leakage by 17% between 2025 and 2030, supported by £700 million of investment in leakage reduction and a further £1.7 billion for smart metering.

Competition will remain an important tool for driving value. For major infrastructure projects, such as the new reservoirs, we will continue to use the Specified Infrastructure Project Regulations (SIPR), following the successful model used for the Thames Tideway Tunnel. We are also looking to consider the best approach to drive efficiency and innovation in project delivery through competition more widely.

Before I finish, I'd also like to address something fundamental. As a proud trade unionist, I care deeply about the safety and wellbeing of the people who keep this sector running.

Recent incidents targeting water company staff are deeply concerning. No one should face abuse or intimidation simply for doing their job.

Government has been clear: this behaviour is unacceptable. We have written to water company chairs and CEOs to reiterate that staff safety is a priority. We are working with companies and trade unions to foster a culture of respect and collaboration, and we will continue to engage closely to ensure that every employee can work without fear.

Safety is not negotiable. Together, we must set the tone: zero tolerance for abuse, trust between companies and their workforce, trust between the sector and the public, and a shared commitment to protecting those who deliver essential services every day.

Finally, I want to be clear that this is our chance to make changes that will have an impact for decades to come.

The prize is right there in front of us. To be part of real national renewal after years of decline.

Yes, we face significant challenges, but also huge opportunities to build a regulatory system that is clear, coherent, and focused on outcomes. To attract the investment we need whilst protecting customers. To deliver infrastructure that doesn't just patch over problems but builds resilience for decades to come. To deliver new jobs and opportunities to every single part of England and Wales.

Most importantly, this is our opportunity to rebuild public confidence – to show that yes, water companies, regulators, and government can work together to deliver the outcomes people expect and deserve.

You've already begun to show what happens when the sector pulls together. I know that together we can do more. We are not in competition. We can, and should, work more together.

As you leave this conference and return to the crucial work you do, I ask you to carry three things with you:

First, ambition. The scale of change we need is significant – let's not be timid about what we're trying to achieve.

Second, collaboration. The theme of this conference isn't just nice words – it's the only way we are going to succeed.

And third, accountability - to customers, to each other, and to the environment. Because ultimately, we will be judged not just on our plans or on our promises, but on whether we deliver real, visible, lasting change.

Now together let's build a future we can all be proud of.