Steve Reed MP: speeches

Speeches

• 4 Sept 2025 · Topical Questions · Hansard source

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  My hon. Friend makes an important and timely point. Through the floods resilience taskforce, we are looking at how we can update the modelling to make sure that all areas that need protection will get the investment to do it, because far too many communities are exposed to the dangers of flooding. That is why we are investing £4.2 billion between 2026 and 2029 to protect our communities and better maintain our flood defences in England.

• 4 Sept 2025 · Dorset Coast: Pollution · Hansard source

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  I have enjoyed visiting Milton Abbas on many very happy occasions. I agree with the point that the hon. Gentleman makes. We are working with farmers and landowners to ensure that they are getting the support they need to take the kind of action that he talks about. The new regional tier proposed by Sir Jon Cunliffe will give a place where farming and land managers can raise their voices and ensure that the outcomes they can contribute to are delivered.

• 4 Sept 2025 · Dorset Coast: Pollution · Hansard source

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  My hon. Friend showed me the scale of pollution on the Dorset coast and I share his determination to put a stop to it. This Government are fixing the broken sewage pipes that are responsible for this pollution, funded by £104 billion of private investment that we have helped to secure. Over the next five years, that will fund Wessex Water, in his area, to cut storm overflow spills by 43%—a major milestone towards cleaning up for good beautiful places in his constituency, which I had the pleasure of visiting with him, such as Bournemouth beach and Hengistbury.

• 4 Sept 2025 · Dorset Coast: Pollution · Hansard source

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  Nationalisation is not the answer, because it would require handing over more than £100 billion to water company owners that could only be raised through higher taxation or cuts to vital public services. It would also take years of legal wrangling that would see the brakes slammed on investment, causing pollution to get worse and, ultimately, lead to higher bills for customers. This Government are taking the fastest possible route towards cleaner water and fairer bills.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  I assume that is not my hon. Friend the Member for Hemel Hempstead (David Taylor), but another David Taylor. I am happy to ensure that my hon. Friend the Member for Portsmouth North (Amanda Martin) gets that meeting. Let me take this opportunity to thank her for being such a champion for her residents and her constituency. I have had the honour of visiting a couple of times, and I have seen how strongly she fights for clean water in her community.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  My hon. Friend makes an important point. In Sir Jon Cunliffe’s final report today, he makes recommendations for how customers can be put at the heart of the new model. There are several recommendations; I will not go through all of them, but one is to set up new regional entities, where customers will have direct representation in taking decisions about how water infrastructure investment will be spent to tackle the priorities in their own areas.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  The new regulatory regime will allow for much closer supervision of the water companies, and will be able to intervene much earlier if there is any sign of those companies failing to invest in the priorities that they have committed to invest in.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  I welcome the hon. Member’s support in principle for Sir Jon Cunliffe’s proposal, which I have accepted, to merge the four regulators’ water functions into one single super-regulator. I will publish the White Paper containing the Government’s full response during the autumn. If the hon. Member would like to peruse the 450-page document that Sir Jon has provided, he will find 88 separate recommendations in it, many of which will significantly strengthen regulation so that the new regulator can enforce much more harshly against the kinds of abuses that water companies got away with in the past.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  Thank you, Mr Deputy Speaker. I have, of course, saved the bulk of my responses for you and the House this afternoon. With permission, I would like to update the House on the Government’s plans to reform the water sector. The water industry is clearly failing. Our rivers, lakes and seas are polluted with record levels of sewage, and water pipes have been left to crumble into disrepair. I share customers’ fury at rising bills. Right now, hosepipe bans are in place across the country because not a single new reservoir has been built in over 30 years, and the lack of water infrastructure is blocking economic growth. Water companies have been allowed to profit at the expense of the British people when they should have been investing to fix our broken water pipes. They got away with this because of a broken regulatory system that has failed both customers and the environment. The public expressed their fury in last year’s general election and voted for change. That change will now come. In just one year, we have put in place the building blocks for change. First, we restored accountability by giving the regulators more teeth and introducing a ban on unfair bonuses, severe and automatic penalties for breaking the law, and jail sentences for the most serious offences. Secondly, we are investing £104 billion of private sector funding to rebuild the water network, upgrading crumbling pipes, repairing leaks, building new sewage treatment works and digging out new reservoirs. It is the single biggest investment in the history of the water sector, and it allows me to make a new commitment to the country: this Government will cut water companies’ sewage pollution in half by the end of the decade. That is the most ambitious commitment ever made by any Government about water pollution, and it is just the start. Over a decade of national renewal, we will restore our rivers, lakes and seas to good health. The third building block for change is today’s final report from Sir Jon Cunliffe’s Independent Water Commission. I express my thanks to Sir Jon, his officials, and all those who have contributed to this outstanding piece of work. I agree with Sir Jon that water regulation has been too weak, too complex, and ineffective. Having four separate regulators with overlapping and conflicting remits has failed both customers and the environment. Ofwat has failed to protect customers from water companies’ mismanagement of their hard-earned money, and it has failed to protect our waterways from record levels of pollution. Today, I can announce that this Labour Government will abolish Ofwat. We will bring water functions from four different regulators into one—a single powerful super-regulator responsible for the entire water sector, with the teeth it needs to enforce the high standards that the public rightly demand. The new regulator will stand firmly on the side of customers, investors and the environment and prevent the abuses of the past. For customers, it will oversee investment and upgrade work, so that hard-working British families are never again hit by the shocking bill hikes that we saw last year as customers were left to pay the price of failure by the previous Government. For investors, it will provide the clarity and direction required for a strong partnership between Government, the sector and investors to attract billions of pounds of new funding. For the environment, it will reduce all forms of pollution to clean up our rivers, lakes and seas for good. We will work closely with the Welsh Government to devolve the economic regulation of water to Wales. I will publish a White Paper this autumn giving the Government’s full response to the Independent Water Commission’s final report and launching a consultation on it. Following that, I will bring forward a new water reform Bill early in the lifetime of this Parliament. Ofwat will remain in place during the transition to the new regulator, and I will ensure that it provides the right leadership to oversee the current price review and investment plan during that time. To provide clarity during this period, I will issue an interim strategic policy statement to Ofwat and give ministerial directions to the Environment Agency setting out our expectations and requirements. We will publish a transition plan as part of our full Government response in the autumn. Today, we are immediately taking forward a number of Sir Jon’s recommendations. First, we will establish a new statutory water ombudsman—a single, free service to help customers resolve complaints such as incorrect bills, leaking pipes or water supply failures. The new ombudsman will have the legal powers to protect customers and will bring the water dispute resolution process in line with other utilities, such as energy. It is part of the Government’s ambition to put customers at the heart of water regulation. Secondly, we will end the era of water companies marking their own homework. We will end operator self-monitoring and transition to open monitoring to increase transparency and help restore public trust. Water companies are already required to publish data on some sewage spills within one hour. We will roll out real-time monitoring across the wastewater system, and all this data will be made publicly available online. That will ensure that the regulator and, importantly, the public have the power to hold water companies fully accountable. Thirdly, we commit to including a regional element within the new regulator to ensure greater local involvement in water planning. By moving to a catchment-based model for water system planning, we can tackle all sources of pollution entering waterways, so that they can be cleaned up more effectively and more quickly. This will ensure—for the first time—that water infrastructure investment plans align with spatial planning to support faster regional economic growth. The lack of water infrastructure that held back development around Cambridge and Oxford for so long will not happen again. The new regulatory framework will recognise the risks investors take and, if they meet their obligations, they will see a fair, stable return on their investment. Just last week, I signed the Government’s new water skills pledge to make sure that the sector has the skills and workforce it needs to deliver this vast investment. This Labour Government were elected to clean up water pollution and ensure that unacceptable bill hikes can never happen again. We now have all the building blocks in place to make that happen. We are establishing a new partnership based on effective regulation, where water companies, investors, communities and the Government will work together to clean up our rivers, lakes and seas for good.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  I cannot take credit for the picture—that was Sir Jon—but I can join my hon. Friend in crediting the campaign groups who have done such a fantastic job at keeping this issue at the top of the political agenda. Sir Jon makes proposals in his report about those labyrinthine structures that she is talking about. We need clarity and transparency, and that is what we will now work towards.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  We have to take a rational, not ideological, approach to tackling this problem. Nationalising the water companies would cost £100 billion. Those are not figures, as I have seen my hon. Friend claim, from the water companies; they are provided by officials in my Department under the influence of nobody externally. To pay that money—£100 billion—we would have to take it away from public services, such as the national health service and education, to hand it to the owners of the companies that have been polluting our waterways. That makes no sense to me and it makes no sense to the public. Frankly, I am surprised that it makes any sense to him.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  I thank the hon. Gentleman—I think—for his comments, but it is disappointing that the shadow Secretary of State did not consider a matter of this urgency to be important enough for her to show up in the Chamber this afternoon. I am afraid that that really does reflect the importance that their party ascribed to this issue during the 14 years in which it was in power. I enjoy listening to the hon. Gentleman, but I am afraid that he sounded a little delusional this afternoon. If he really thinks that the Conservatives did so well on sewage, I wonder why he thinks sewage pollution in our waterways increased every single year during their 14 years in charge. The fact is that the Conservatives made the situation far worse, because they instructed the regulator to apply a light touch when they should have told it to get a grip. They stripped out resources from the regulator, reducing its resources by 50% at one point, so it was less able to enforce against sewage pollution. They allowed millions of pounds, if not billions, to be diverted away from investment and to be used instead for unjustified bonuses and dividends for water companies. It is this Government who have secured £104 billion of investment to upgrade our water system. It is this Government who have banned the unfair bonuses that water bosses were taking. It is this Government who are introducing monitoring of all sewage outlets. And it is this Government who are going to clean up our rivers, lakes and seas, where the previous Government failed abysmally.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  The new ombudsman will have statutory powers to provide independent and free support to customers experiencing the kinds of failures that my hon. Friend describes; there are many others, of course. Previously, water was one of the only utilities that did not have that resource available, but it will do from now on. We have also taken steps and introduced measures to increase compensation for people who have experienced failure by their water company, with compensation at least doubling and in some cases increasing tenfold.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  I am afraid that the Green party’s proposals would mean paying £100 billion of taxpayers’ money to the owners of the water companies. That money would have to be taken away from the national health service. It would take years to unpick the current ownership models, during which time pollution in our rivers would get much worse, not better. We know it does not work, and we have only to look north of the border to see it; under the nationalised model in Scotland, pollution is worse, not better. The hon. Member is talking about cutting the national health service, giving £100 billion to the owners of the current water companies and making pollution far worse. That does not sound very green to me.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  Not only should we never abandon bill payers, but we never will abandon them. We are revolutionising the entire water sector so that customers’ interests are right at the heart of it in a way they have never been before.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  I pay tribute to the young people of my hon. Friend’s constituency. Young people famously care about the environment, and they are devastated to see the scale of pollution in our waterways that she described. We have taken all these steps and put in place the building blocks for change within a year of winning the general election. The previous Government had 14 years. They could have done exactly the same thing in any one of those 14 years, but, as is shown by the absence of the shadow Secretary of State, they just did not care enough.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  This Government are going to do what works, rather than what is ideologically correct. We are not going to strip £100 billion out of public services like the national health service to give it to the owners of the water companies who have polluted our waterways; we are not going to wait years to get investment in while pollution in our waterways gets even worse; and we are not going to let the pipes deteriorate to such an extent that bill payers are hit with even higher bills in the future. I am going to act to deliver us lower bills and clean water in the fastest way possible.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  I know Battersea very well—it is a beautiful area—and I am aware of the problems with pollution. Of course, she knows all too well the concerns of her residents about escalating bills as a result of the failure of the previous Government to get a grip on the water sector. We will be publishing the White Paper and launching the consultation this autumn, which will be followed by legislation in the first half of this Parliament.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  I know the River Ver very well because I used to walk over a bridge across it every day on my way to school while I was growing up. I would be very happy to make sure that the hon. Member has an appropriate meeting with a Minister to discuss her concerns.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  The hon. Gentleman makes an important point, but I gently remind him that it was his Government who cut resources to the Environment Agency by 50%, which may well have had something to do with the fact that people were no longer there to enforce against the kinds of failings he talked about.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  I completely agree with the hon. Member, who accurately pointed to the failures of both the SNP Government in Scotland and the nationalised model, which does not fix the problems.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  I welcome the Liberal Democrats’ conversion; when they were in government, and when the Water Minister was indeed a Liberal Democrat, they commissioned a report that found there was no need to change the model of regulation.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  I agree with my hon. Friend that that is disgraceful. I am afraid that these problems arose because the previous Government instructed the regulators to apply only a light-touch approach to regulation, when they really needed to get an absolute grip on this failing sector. The previous Government failed to do that, but this Government will ensure that that happens.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  The hon. Lady is quite right to point to the problems that we are experiencing because of the lack of reservoirs. As I said earlier, we are speeding up the consenting and the building of new reservoirs, so we have the means to catch the rain when it is falling and can use it during drier periods. She refers to leaks. The investment that we have secured will reduce leaks from water pipes, so we can help to conserve water for the purpose for which it is intended.

• 21 Jul 2025 · Independent Water Commission · Hansard source

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  I thank my hon. Friend for her question. Voters want to see action, not just words. That is why I am so proud that that £104 billion of investment that we have secured started to be spent in April. It is already being invested; people will see the change as a result of this. That will help to restore their confidence and their trust in politics, so shattered after 14 years of the Conservatives.