Water Industry Review Dismisses Ownership Reform Despite Systemic Issues

The Independent Water Commission’s forthcoming report will not advocate for changes to water companies’ ownership structures, according to its chairman Sir Jon Cunliffe, a former Bank of England deputy governor.

Speaking before the Commons environment, food and rural affairs committee, Sir Jon clarified that ownership model alterations fall outside the commission’s scope. The revelation comes amid mounting pressure for substantial reforms in the troubled water sector.

Sir Jon emphasised the limitations of available data, stating, “The conclusive evidence is not there to make a big change like that.” His remarks suggest a more measured approach to reform, despite the commission’s interim report identifying “deep-rooted, systemic” problems within England and Wales’ water industry.

The commission, established in October 2024 following Labour’s ascension to power, is set to deliver its final recommendations in July. While wholesale ownership changes are off the table, the report may propose enhanced water planning across river basins and new legislation concerning wild swimmers’ health.

Sir Jon acknowledged time constraints had impacted the report’s depth, noting that a more comprehensive analysis could have taken “two or three years.” The commission’s eight-month investigation timeframe has necessitated a focused approach, leaving some aspects for future consideration.

The stance on ownership structures might disappoint reform advocates, particularly as the interim report highlighted no single solution exists for the sector’s fundamental reset. This position reflects a pragmatic approach to industry reform, prioritising achievable improvements over structural overhauls.