Mayors could be given powers to oversee water companies

Plans are being considered by the government to grant mayors and other local political leaders the authority to oversee water companies. Prime Minister Andy Burnham's proposal involves creating nine new regional bodies to plan, set objectives, and hold water companies accountable. This concept was a key recommendation from Sir John Cunliffe's Independent Water Commission report published in June last year.

Burnham, as Prime Minister, has been focused on improving the water industry, which has seen customers in England and Wales facing increasing bill hikes. However, there has been a lack of detail on how this could be accomplished without full nationalization, until now.

The Cunliffe report suggested that these regional bodies could have the power to oversee certain aspects of water companies' spending and hold their executives accountable for issues such as bills and sewage discharges. The review noted that this change would give local voices, customers, and experts a stronger role in influencing the decisions made by water company boards.

These regional bodies could consist of a mayor or local government representative, an independent chair, experts, and representatives from sectors like transport and agriculture.

While the proposal is still under consideration, officials in the Department for Environment, Food, and Rural Affairs are reportedly interested in the idea. The government aims to bring about greater public control of water companies through various means, including tougher regulation, stronger enforcement, and increased accountability.

This approach aligns with the government's broader efforts to address growing public concerns over sewage spills, rising bills, and the sector's under-investment, exacerbated by climate change and population growth.

Prime Minister Burnham, during his first speech to the House of Commons, criticized the water industry as a "leaking monument to that approach," highlighting the need for a public interest-driven model. Burnham has already committed to providing mayors more control over public services such as social housing, welfare, and education.

His plans also include allowing mayors more control over budgets for a decade-long economic transformation. The proposal to give mayors oversight of water companies comes as the number of household complaints to the industry watchdog rose by 84% year-on-year, driven by dissatisfaction with rising costs and service quality. Despite the lack of a final decision, there is a consensus among Westminster MPs that the current water industry model is broken and requires reform.