Burnham considers giving mayors ‘control over water companies’
Prime Minister Andy Burnham plans to create nine regional bodies led by mayors that could bring water companies under public control.
Under the proposals, regional leaders would sit on boards alongside public health officials, customers and environmental campaigners.
Alongside setting company objectives, it is understood the boards will collect customer feedback through consultation mechanisms modelled on those used by Transport for London, according to The Daily Telegraph.
The new framework would also draw on recommendations laid out in a review of the water industry by former Bank of England deputy governor Sir Jon Cunliffe, whose ideas were not fully implemented by Sir Keir Starmer.
Burnham’s 10-year plan
In his first appearance in the Commons earlier this month, Burnham described Britain’s water industry as “a leaking monument” to “a series of wrong turns” taken since the 1980s.
The Prime Minister previously unsettled investors by announcing support for full nationalisation during May’s Makerfield by-election.
Earlier this month, South East Water abandoned a bond issue to raise hundreds of millions of pounds after it failed to attract adequate interest from investors, who had been hesitant to offer finance after Burnham announced his plans.
The Department for Environment, Food and Rural Affairs (Defra) has previously estimated that nationalising the water industry could cost £100bn.
Investors hope the new boards, which would significantly weaken the power of water executives who have come under sustained criticism, can restore public trust in water companies and strengthen their ability to raise private capital.
Despite a ban on some industry bosses receiving bonuses if they fail to meet environmental, customer and financial standards, the salary of Thames Water’s chief executive, Chris Weston, rose nearly 14 per cent over a year to £995,000.
Regional control was a key recommendation of last year’s Independent Water Commission’s report, which called for “empowered and accountable regional bodies”. Then-minister Steve Reed accepted the review in July 2025, and while several of its recommendations, such as introducing a new regulator, were laid out in a white paper in January, regional bodies were not.
The reports are the latest in Burnham’s plan for the biggest transfer of power from Westminster “in a generation”, made in an effort to boost economic growth and restore trust in public services. However, last week, Burnham faced backlash from the hospitality industry for granting regional leaders powers to charge uncapped tourist taxes on hotels, holiday lets and bed and breakfasts.
The policy is likely to be formally announced in Burnham’s much-anticipated “10-year plan” later this year.
A government spokesman said: “Our water industry has not been working for people for far too long. We’re bringing in tougher regulation, stronger enforcement and greater accountability, so water companies deliver for customers and the environment.”