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Hammaad Saghir

UK and Welsh Governments Unveil Ambitious Independent Water Commission




Today, the government announced the launch of an Independent Commission to conduct a comprehensive review of the water sector and its regulation, marking the most significant analysis of the industry since its privatisation. This new initiative, revealed on Wednesday, 23 October, represents a critical step in the government's ongoing strategy to establish a robust regulatory framework to draw the necessary investments to enhance our water infrastructure and clean water bodies and boost public trust.


The move builds on discussions from last week's inaugural International Investment Summit, where the Prime Minister emphasised the importance of regulatory frameworks that foster economic growth and investment within the UK. The Commission, a collaborative effort between the UK and Welsh governments, addresses longstanding systemic challenges within the water sector. Its findings, expected next year, will provide crucial recommendations to restore the health of the nation's rivers, lakes, and seas while also preparing for future demands and stimulating economic expansion.


These recommendations will lay the groundwork for future legislation to secure long-term investment and significantly improve water quality—potentially unleashing billions of pounds into the economy. The proposed measures are designed to expedite infrastructure projects supporting residential development and to tackle the pressing issue of water scarcity, with projections indicating a need for an additional 5 billion litres of water per day by 2050.


Jon Cunliffe, a former Deputy Governor of the Bank of England, will chair the Commission. Cunliffe's extensive background in economics and regulation underscores the government's serious commitment to revitalising the water sector. The Commission will benefit from the insights of a diverse panel of experts from the regulatory, environmental, health, engineering, consumer, investment, and economic fields. This initiative is part of a broader governmental effort to reset the water sector by fostering a new partnership among governments, water companies, consumers, investors, and all stakeholders dedicated to preserving and enhancing our aquatic environments.


Launching the review, Secretary of State Steve Reed said: "Our waterways are polluted, and our water system urgently needs fixing. That is why we have launched a Water Commission today to attract the investment we need to clean up our waterways and rebuild our broken water infrastructure. The Commission's findings will help shape new legislation to reform the water sector, so it properly serves the interests of customers and the environment."


Water Commission Chair Sir Jon Cunliffe said: "I'm honoured to be appointed as chair of the government's new Water Commission. It is vital we deliver a better system to attract stable investment and speed up the building of water infrastructure. Working over many years in the public sector, in environment, transport and, the Treasury, and the Bank of England, I have seen how the regulation of private firms can be fundamental to incentivising performance and innovation, securing resilience and delivering public policy objectives. I am looking forward to working with experts from across the water sector, from environment and customer groups and investors, to help deliver a water sector that works successfully for both customers, investors and our natural environment."


Huw Irranca Davies, Wales' Deputy First Minister with responsibility for Climate Change and Rural Affairs, added: "This vital review couldn't come at a more urgent time for our water environment and water industry. This shows the fresh approach of our two governments working together on an issue which affects us all as consumers, investors and as stewards of the natural world. Both the Welsh and UK Governments are determined to improve water quality and the resilience of the water sector for future generations. We have clear priorities for reform and a shared sense of the work needed across both countries' policy and regulatory regimes to make this change happen."

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