Communities to get a stronger say over billions of pounds of water investment

Eight new regional water councils will put communities at the heart of decisions on tackling sewage, flooding, drought and securing future water supplies

Communities across England will get a bigger say over how water companies invest in their area under plans to put more power in local hands.

Eight new regional water councils will bring local leaders, customers and businesses together to set the priorities for their region, helping shape billions of pounds of investment in water and flood infrastructure.

Decisions about the water system are taken nationally, despite communities facing very different challenges. From Lake Windermere, where discharge of sewage has damaged local tourism, or in Cambridge, where drought and water shortages have stalled growth – local areas have not had enough influence over the decisions that directly affect them.

The new councils will change that, giving communities and local leaders a stronger voice over priorities including sewage and water quality, flooding, drought and future water supplies. Mayors will also receive new powers through the strengthened Water Bill to hold water companies to account for their performance.

The reforms are part of the Prime Minister’s drive to move power out of Westminster and give communities greater control over the services and investment that shape their lives.

Prime Minister Andy Burnham said:

"I know how desperate people are for change when it comes to water. I share their frustration at seeing sewage and pollution blight our rivers, lakes, and seas, while decisions about their local areas are taken miles away.

"That’s not right. So for the first time, local people will have a real say over what they need from their water company, whether that is cleaning up polluted rivers, building new reservoirs or protecting homes from floods.

"That is what moving power closer to communities looks like. Making sure local voices are heard and local priorities come first."

Existing regional partnerships have already shown what can be achieved when decisions are shaped around local needs. Greater Manchester’s Integrated Water Management Plan has brought together planning, regulation and investment, with improved drainage helping support town-centre regeneration. In East Anglia, Water Resources East has brought partners together to tackle severe water scarcity, including the constraints it places on sustainable growth in Greater Cambridge.

The eight new regional water councils will build on that approach and embed it across England.

Local leaders have been asked to submit proposals on how they want to run the new bodies by the end of the year. Each council will then draw up a plan setting out the biggest pressures on its region’s water system, the choices that need to be made and the public and private investment that can help address them.

Environment Secretary, Dame Angela Eagle, said:

"For decades, the water industry has failed to work for the people and places it was meant to serve.

"I am determined to put the public at the heart of decision-making – shaping what their bills will be spent on, so they can see real differences happening in their communities.

"I share the country’s desire to see change now, and that’s why we are creating a radical new water system that will put public interest first."

This comes after the Environment Secretary took the unprecedented step of setting clear expectations for the next Price Review, warning water companies they must provide better value for money for struggling households.

Government is pushing ahead with reforms to overhaul a system in which shareholders never lose and customers never win. Water companies are being held to higher account with new powers for automatic fines, and the introduction of criminal liability for water bosses who cover up or hide sewage spills.

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.

From: Department for Environment, Food & Rural Affairs, The Rt Hon Dame Angela Eagle DBE MP and The Rt Hon Andy Burnham MP