Burnham considers giving mayors ‘control over water companies’

Prime Minister Andy Burnham is contemplating the creation of nine regional bodies, each led by a mayor, that could potentially place water companies under public control. These regional leaders would join boards alongside public health officials, customers, and environmental campaigners. The boards would help set company objectives and gather customer feedback using consultation mechanisms resembling those employed by Transport for London.

The framework would also incorporate recommendations from former Bank of England deputy governor Sir Jon Cunliffe's review of the water industry, though these ideas were not fully adopted by Burnham's predecessor, Keir Starmer. In his first appearance in the Commons, Burnham criticized Britain's water industry as a "leaking monument" to "a series of wrong turns" since the 1980s.

His plan, which seeks to boost economic growth and restore trust in public services, calls for a significant transfer of power from Westminster in a generation. However, Burnham's proposal has faced opposition from the hospitality industry due to plans to grant regional leaders the authority to impose uncapped tourist taxes on hotels, holiday lets, and bed and breakfasts.

The government has acknowledged that the water industry has not been serving people adequately and plans to introduce tougher regulation, stronger enforcement, and greater accountability.