The Prime Minister announced today (29 September) that the
strengthened Water Bill will remove the current limits on
government ownership of shares in the major water and sewerage
companies in England.
Public interest should be at the heart of how our critical
services operate. The Government intends to increase public
control to deliver cleaner waters, fairer bills, stronger
accountability and better outcomes for customers and the
environment.
This change will remove a historic restriction on government
share ownership, which does not exist in other sectors, so
government can act where water companies let down customers and
the environment.
Current limits set out in the Water Act 1989 on government
ownership of shares in the major water and sewerage companies,
and the associated restriction on government acquiring shares in
those companies, will be removed. These limits vary between 1-3%,
the exact limit varies by company and is below 3% in each
case.
The change will apply in England.
The Government recognises that securing the long-term future of
England's water sector relies on continued private sector
investment. Removing the cap does not change that. We will
continue to work with investors, regulators and companies to
secure the best outcomes for consumers and the environment.
This announcement gives the Government flexibility to consider a
wide range of possible future interventions, including on
ownership models, and provide support where it is needed. We are
committed to delivering these reforms within the fiscal rules
which the Chancellor and Prime Minister have been clear will be
met at Budget, with a buffer against uncertainty.
The Prime Minister also recognised that mayors and strategic
authorities currently have far too little influence over
companies' priorities or mechanisms to hold them to account. New
powers for local leaders will be developed as part of the
Government's reforms of the water sector.
Further details on the Government's approach to the water
industry will be set out in the 10-year plan for Britain, to be
published later this year. This will set out plans for stronger
public control over essentials like water, making them work for
people and places again and will underpin the reform we will take
forward through a strengthened Water Bill.
