Independent Water Commission Interim Report

Statement

My Right Honourable Friend, the Secretary of State for Environment, Food and Rural Affairs, Steve Reed MP, has made the following Written Statement.

Today, the Independent Water Commission has published an interim report setting out its preliminary conclusions on water sector reform.

In October 2024, the UK and Welsh Governments appointed Sir Jon Cunliffe, former Deputy Governor of the Bank of England, to chair the Commission and make recommendations to reset the water sector in England and Wales.

The Government set the Independent Water Commission a considerable task in reviewing the water sector in its entirety. Our water system must serve both its customers and the environment, but we inherited one that did neither. I thank Sir Jon for his interim report.

Today’s report focuses on five key areas: 1) Strategic direction and planning 2) Legislative framework 3) Regulatory reform 4) Company structures, ownership, governance and management 5) Infrastructure and asset health.

I remain of the view that transformative change across the water sector is needed. We need to create the conditions to attract future long-term investment, ensure resilient finances and contribute to economic growth, whilst supporting affordable customer bills.

The Government will review Sir Jon’s interim findings in detail and looks forward to receiving his final recommendations later this summer.

We will respond in full later this year following the Commission’s final recommendations. This will include a detailed transition plan for the water sector. This will form the basis of further legislation to reset the sector and attract the investment we need to ensure its resilience for decades to come.