← LEADERSHIP TERMINAL

UK PARLIAMENT · SITTING

Dr Neil Hudson

MP for Epping Forest · Conservative · United Kingdom

IN THEIR OWN WORDS

263.] On the issue of energy, which is pertinent, given that incinerators provide around 3% of the UK’s total energy generation, much of Britain’s total energy needs are still met by oil and gas. Both the Government and the Climate Change Committee have admitted that we will still need oil and gas for decades to come.

WASTE MANAGEMENT SITES · 2026-07-15 · READ IN HANSARD

Studies suggest that environmental contamination can bring “heightened stress and anxiety to the point of dread”. The UK Health Security Agency found that “it is not possible to rule out adverse health effects from MWI completely”, which will offer little reassurance to constituents living near one.

WASTE MANAGEMENT SITES · 2026-07-15 · READ IN HANSARD

Member for Ely and East Cambridgeshire (Charlotte Cane) also discussed the fire issue. The hon. Member for Heywood and Middleton North (Mrs Blundell) discussed odour and wellbeing issues. The hon.

WASTE MANAGEMENT SITES · 2026-07-15 · READ IN HANSARD

I am very proud of the previous Conservative Government’s record on this issue. We introduced the 2018 resources and waste strategy, the 2023 waste prevention programme and a statutory target to halve residual waste per person by 2042.

WASTE MANAGEMENT SITES · 2026-07-15 · READ IN HANSARD

Sites that are managed poorly and left to get out of hand by the authorities can lead to a vicious cycle where unscrupulous operators move in, fly-tipping is exacerbated and local communities and the environment are negatively impacted. The Countryside Alliance’s recent report on waste crime is useful here.

WASTE MANAGEMENT SITES · 2026-07-15 · READ IN HANSARD

It is always a huge pleasure to be intervened on by the hon. Gentleman. He has been very kind to me over the years. After my maiden speech, he came across the Chamber to speak to me and was very kind, so I will always take an intervention from him, as I am sure everyone else will. I totally agree.

WASTE MANAGEMENT SITES · 2026-07-15 · READ IN HANSARD

The complete record

Every one of 600 lines we hold for Dr Neil Hudson, in date order, each linked to its source. Free to read, in full, without an account. Page 11 of 12.

  1. I urge the Minister to consider those points and to remove the clauses. Accordingly, we will seek a vote to remove clauses 12 and 13 from the Bill.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  2. Although the powers in clause 13 are independent of who occupies the offices of the Welsh Government, it should be noted that the Welsh Government who would currently be expected to exercise the powers do not have the most brilliant track record on the water industry, to say the least. Under the Welsh Labour Administration, the average number of spills from storm overflows in 2022 was two thirds higher than in England. That record suggests that the Government in Wales leave much to be desired when it comes to the competence of the water industry, and there is evidence for concern when it comes to exercising the clause’s powers. Regardless of the specifics of the subsections and of who holds the powers contained in clauses 12 and 13, they are, as they stand, completely against the principles of improving the water industry.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  3. The time taken to defend the measure and oppose reforms suggests that this is no mere formality in the wording of the Bill, but something that the Government may put in place. The Minister in the other place said that the Government would seek to exercise the power in proposed new subsection (4) only if Government bail-outs to water companies could not be financed for the duration for which a company is in special administration—that is, during the shortfall. If that is the condition the Government are setting for the measure—if we have to have the measure at all—could they not have set it out explicitly within the Bill? At the very least, that would have provided clarity about how far the power should be permitted to go. Clause 13 will provide the Welsh Government with the same powers as those in clause 12.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  4. Why should a retired police officer in Yorkshire or a hard-working nurse in Cornwall lose out to a hedge fund owner in New York trying to make a quick return?” —[ Official Report, House of Lords, 20 November 2024; Vol. 841, c. 293.] Although in the other place the Government attempted to explain away concerns by suggesting that they do not think that they will have to use the power except as a last resort, and that the bar for special administration would be extremely high, the fact that on more than one occasion the Government could have accepted amendments to remove proposed new subsection (4) must mean that they expect that on at least some occasions they will require its use.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  5. Under clause 12, proposed new section 12J(4) of the Water Industry Act states that “relevant financial assistance” in subsection (3) can include “any other company which holds or held an appointment under this Chapter and whose area is or was wholly or mainly in England.” Companies that do the right thing could be forced to pay up, or make their consumers pay up, for the mistakes of those who have failed to do the right thing. As my noble Friend Lord Remnant put it: “It is the debt and equity investors” in a company that has failed to do the right thing “who should pay for these losses in the form of lower proceeds from any eventual sale.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  6. Worse still, the clauses fail completely to specify how much they can require companies to raise from consumers or how much consumers could have to pay in increased costs as a result of the Government’s imposition of these conditions on water companies. That means that any announcements of price changes to water bills, such as those announced by Ofwat, could give no indication at all of how much consumers could end up paying on their water bills. To compound the higher prices even further, consumers may end up facing higher bills to solve special administration financial issues for companies by which they are not even served.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  7. Although reforms have been made to ensure that water company bosses who are not doing their duty with regard to our waterways are forbidden from claiming excessive bonuses, the sting will remain for many people when they keep in mind the prospect of paying higher bills to bail out companies for their poor financial performance. To water companies, these clauses will send out a signal that they do not have to worry about incurring the consequences of financial irresponsibility, as the Government will have a mechanism to bail them out and consumers may indirectly have to fork out the costs. Nobody is being required to take accountability or face the consequences of the decisions that have caused the failure, but those who have no responsibility or influence are being forced to pay an unfair price increase.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  8. I say gently to the Government that the recent Budget did not help the situation for people’s household budgets. How can it be fair that as a result of these clauses the Government may lead consumers to pay more at a time when many are finding it difficult to pay their bills and do not feel that they are getting the clean water that they deserve? It will potentially add insult to injury when many people are all too aware that they could face higher prices on their water bills because of the Government’s moves. Shareholders and water company bosses used to be able to receive dividends and bonuses despite polluting our rivers and seas and failing to do the right thing to tackle it.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  9. Three were placed in the highest category of “action required”, which means that action must be taken or is being taken to strengthen a company’s financial resilience challenges and that there is a requirement to publish additional information and reporting on improvements at a more senior level with Ofwat. As well as sending out the opposite message to the companies that Ofwat is working so hard to scrutinise and regulate to protect consumers, clauses 12 and 13 send out the wrong message to consumers themselves. Consumers were recently told that they can expect their average bills to rise by a minimum of about £86, at a time when no doubt some of them have concerns about how to afford their existing bills, along with wider cost concerns.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  10. As I said in a sitting of this Committee last week, the financial resilience of the water industry is not a hypothetical issue, but one of paramount concern right now. We are all starkly aware of concerns surrounding the financial resilience of companies such as Thames Water. We heard about that in detail on the Environment, Food and Rural Affairs Committee in the last Parliament. In November, Ofwat’s “Monitoring Financial Resilience” report identified 10 companies that needed an increased level of monitoring and/or engagement concerning financial resilience.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  11. The problem seems self-evident. If water companies, through their own failure, require the Government to place them under special administration, why should consumers be expected to foot the bill for those failures when they had no particular responsibility for them? It runs contrary to the nature of all the action that has been taken in recent years to try to improve our water quality, and companies that have failed to get their affairs in order must take responsibility. I was on the Environment, Food and Rural Affairs Committee in the last Parliament, and we spent a lot of time looking at the financial resilience and behaviour of the water sector in close detail. I know that the current iteration is continuing that work. It was concerning to hear about the financial resilience of the sector at first hand in our hearings and meetings.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  12. On clauses 12 and 13, the Opposition tabled amendments 7 and 8 to remove them. They provide the Government with the power to issue special administration orders to water companies that face financial difficulties. I put on record my thanks to my Conservative colleagues in the other place for sounding the alarm on this issue when the Bill came forward. They made the case that the measures in clauses 12 and 13 could put the very people we want to protect in such legislation, namely the consumers, at risk. The moral hazard has been explicitly set out by my colleagues in the other place, but I will attempt to summarise it so that we are clear what the problem is. As it stands, the clauses will give the Government the power to recover any losses they make through placing a company in special administration by raising consumer bills.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  13. I and others have outlined in Committee that the performance of water companies in financial resilience, as well as many other matters, has not been satisfactory and has been very upsetting for the British public. Therefore could the Minister please respond and assure the Committee that there can be no unforeseen repercussions for consumers from this clause? That is a recurrent theme as we go through line-by-line scrutiny of the Bill: are there any unintended consequences whereby the taxpayer and the end point consumer will be unfairly penalised by the legislative changes? With that in mind, we have no formal objections to this clause but again we seek clarification that the end point consumer will not inadvertently suffer detriment from this legislation.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  14. First, we would like to hear the Minister articulate what benefits this particular clause brings to the Bill. I was not fully clear from her introductory remarks about the actual benefits. Secondly, does she believe that this change to winding up a water company or any other relevant undertaker will provide a fairer winding-up process? While we are focusing on water companies and the processes for them, we all want to ensure that the clause provides, again, protection for the consumers, who, as we agree across the Committee, have for too long faced unsatisfactory levels of service from the water industry and the practices of some water companies, so could the Minister please explain whether consumers were considered when this clause was drafted?

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  15. The Opposition note that clause 14 attempts to make amendments to previous legislation so that a court may not exercise powers that it currently has with regard to an application for winding up an undertaker without providing advance notice of the petition to the Secretary of State, Welsh Ministers—as appropriate—and Ofwat, and without a period of 14 days having elapsed, as outlined in subsection (2). We also note that the clause likewise grants a further power for the Secretary of State, Welsh Ministers and Ofwat to be entitled to be heard at a winding-up petition’s hearing and any other hearing that relates to part 4 of the Insolvency Act 1986. Again, we do not wish to raise any formal objections to this particular clause, but we ask for a couple of clarifications from the Minister, if she will indulge us.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  16. I support Government amendment 5, as it is a privilege amendment in accordance with the procedure for the passage of Bills between the other place and this place. We wish to raise no formal objections to this and we have no opposition to the amendment.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  17. The former MP for Ludlow and Chair of the Environmental Audit Committee made assiduous efforts to see this fund introduced, as well as wider measures to protect our precious waterways. As we have discussed with the Minister, there is considerable consensus on what we can do collectively and on a cross-party basis to protect and nurture our watercourses and waterways. I hope the Government will take forward and continue the water restoration fund because it is pivotal to what we are trying to do.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  18. I pay tribute to that body for its successful campaigning, which in led no small part to the previous Conservative Government introducing the excellent water restoration fund. In 2022, I was proud to sign the Conservative Environment Network’s “Changing course: a manifesto for our rivers, seas and waterways”. That was its first public declaration, setting out the ambition to introduce this policy recommendation. In addition to the Conservative Environment Network, I would like to namecheck and thank the good folk of Wildlife and Countryside Link for their support and campaigning for the fund and this proposed new clause. I also pay tribute to the Angling Trust for the discussion we had on this matter, and give a big shout-out to our former colleague Philip Dunne, who was respected across the House.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  19. I beg to move, That the clause be read a Second time. The proposed new clause would introduce a legal requirement that money collected from water companies from financial penalties imposed by the Bill are legally required to be used by the water restoration fund. As with much of the Bill, the Government intend to build on the work begun by the previous Conservative Government. The water restoration fund is one pillar of that record that the Government would do well to advance. I look forward to hearing from the Minister what they plan to do with that excellent fund, which needs to be reinstated and progressed. I have personally championed the water restoration fund, not only in my present role as shadow DEFRA Minister, but before that as a member of the Conservative Environment Network.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  20. Special consideration would have been given to watercourses in road guidance, and supporting the physical restoration of the streams as key pillars of our plan would have put chalk streams back on the road to the recovery that is needed. As the deviser of the plans has said publicly, although the Government may want to focus on chalk streams in national parks and landscapes, they risk ignoring chalk streams in most need of recovery across the country. Can the Minister explain why this vital plan of action, which was ready to go, has not been fulfilled? I hope that this decision was not based on politics. We need to look at this in terms of evidence and what is best for our environment.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  21. It was very disappointing that over the Christmas period it was revealed that plans from the Conservatives to recover our chalk streams have been laid to one side by the Government. Given that England is home to over 80% of the world’s chalk streams, the failure to act on this issue is neglect of a vital duty to protect a not only a key part of the UK’s environment, but a feature in the environment of the world. They are a precious resource that very few countries are lucky to have access to. Members across this House represent areas with chalk streams. It is a dereliction of duty to ignore that category in the UK environment. The plans that the previous Government proposed would have given chalk streams a new status of protection.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  22. Given all that we have outlined, there cannot be a more justified way of directly making restoration for damage to our previous water system than the mechanism laid out by the water restoration fund. Water companies pay the fines for the damage that they have done, and local communities that are affected are empowered to restore the precious waterways that they live near. A finer detail of the amendment that should not be ignored is the fact that we will improve chalk streams. It is unfortunately clear that, despite the Government’s pitch to the British public that they would do better than the previous Government in protecting our waterways, their actions on chalk streams do not bear that out.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  23. Where money comes from taxation, ringfencing is not always the most reliable way to ensure the Treasury has the spending power it needs to deliver public spending, but we are talking about something completely different. Fines are much more uncertain and provide less guarantee regarding the amount of money that they will bring in. To rely on funds such as these for day-to-day broad Treasury spending simply does not make sense. Ringfencing penalties for the water restoration fund is a much more sensible measure that allows Governments to guarantee that they can meet a specific need. In other words, those who are at fault for harming the quality of our rivers, seas, coasts and lakes make restoration for the damage caused by their action—or inaction.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  24. At the heart of the proposal is simply this: those who are at fault for the damage done to our waterways must make restoration for it. Given the facts, I find it disappointing that, despite the cross-party efforts in the other place to enact such measures, they were not listened to by the Government. I hope that in a spirit of consensus the Government will look at that in this Session. The arguments made by the Government in the other place were not satisfactory. They objected to the principle of ringfencing the funding and to the need for the Treasury to have flexibility in how it spends the money, but in this specific case the argument does not quite stack up.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  25. Yes, I was aware of that. I am acutely aware of it now and congratulate my hon. Friend on securing it. It highlights the fact that there is a lot of agreement. I am sure that his debate will demonstrate cross-party consensus on the use of nature-based solutions. We debated flood mitigation in Committee last week, but the water restoration fund is pivotal to trying to improve the situation at the local level and at the local catchment level as well. Since being introduced by the previous Government, the water restoration fund has provided £11 million for communities to repair their local waterways and restore them to the quality that they should be at—the quality to which local communities should be entitled.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  26. If the Government do not face up to this, that might be a negation of the various promises they made to the electorate when in opposition and send a message that their words are merely soundbites. I hope that the Minister will consider the points I have made and support this amendment to restore the water restoration fund—for the sake of not only our waters, but the democratic and local accountability on which they rely. We will seek to push new clause 2 to a vote.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  27. Good. We are all for talking about and raising the issue of chalk streams, but it is clear that we wanted to include that in our amendment. Our amendment will therefore be a chance to give chalk streams the attention they need from this Government. The previous Government were ready to deliver that and hand the baton over to the new Government, so that they could follow through on the explicit requirement that chalk streams be considered. The amendment is a chance for the Government to reconsider their stance on the water restoration fund. I would be grateful for clarity from the Minister about what they are planning to do. If they are serious about improving our waterways and if the money from penalised water companies is allowed to go back into the local area to improve those waterways, we could agree about that.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  28. I am not reassured by those comments. The Minister says that the water restoration fund does not need new legislation, but we are concerned that the fact that the fund is not in the Bill shows that the Government are not doing anything with it. They are completely silent about it. I fear that they are going to drop the baton they are being handed and let it pass away. The fund needs to be in the Bill. I am not reassured by the Minister, so we will press a vote on the establishment of a water restoration fund in the Bill. Question put, That the clause be read a Second time.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  29. I have already mentioned that, when the Conservatives were in government, we took action to set out that water bosses would be banned from receiving bonuses if a company had committed serious criminal breaches. The Bill copies that and takes it forwards, but the new clause takes the principle of accountability, which has been raised in the Committee’s last couple of sittings, even further.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  30. Of course, one might suppose that it is difficult to make an equivalence between the amount of a financial penalty and the amount to be reduced on the bills, but subsection (2) sets out that it must be calculated by dividing the total financial penalty by the water company’s number of customers. We have laid out a formula that the Secretary of State could follow in fulfilling the duties under the clause. The Government might object that the clause would create additional duties for the Secretary of State on top of their existing ones, but the Opposition believe that the measure is relatively simple, can be calculated and is worth adopting for the very principle of accountability for which all of us across this House are striving.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  31. I beg to move, That the clause be read a Second time. New clause 3, which His Majesty’s Opposition will again push to a vote, has at its heart the people we want to protect—the very individuals who this Committee has acknowledged are most affected: the consumers and bill payers. They are the pivotal reason why we have tabled the clause. The clause would require the Secretary of State to make provision so that where a water company has faced financial penalties for failure to comply with the law, a financial amount equal to those penalties must be removed from the bills of that water company’s consumers.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  32. Given the amount of time we have spent talking about this issue, they may also feel that the new Government are not willing to act to protect the consumer in this area. Subsection (3) seeks to break that cycle and send a signal to bill payers that actions to regulate water companies have a real, tangible effect. Showing the reduction in consumer bills directly on the statement of account will provide a real, tangible sign that the poor behaviour has been looked at, people are going after the water companies and consumers will benefit from that. It also serves as compensation for those who have been directly affected and as an example of justice in action—the principle being that those who harm pay a penalty, and those who are harmed receive restitution. I return to my comments about the water restoration fund.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  33. In the name of accountability and trust between the public and Governments—of all colours—that seek to address this issue, subsection (3) states that the reductions to customer bills imposed under the clause will be indicated on the statement of account for each consumer who has received the reduction. We believe that that is important. For too long, a toxic cocktail of water companies’ poor behaviour and rising bills has led too many people to feel that they are getting poor value for money, and that they are not getting the quality water services they deserve for the price they are paying—hard-working people, up and down the country, who work consistently to pay their bills and do the right thing, while the water industry’s negative practices continue.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  34. The Bill will try to take things further, but I gently say to the Government that we were the party that started collecting the data, which allowed us to realise the scale of the situation and try to introduce measures to sort it. The new clause ensures fairness for customers and ensures that fines on water companies will not impact customers, who are not at fault for the water companies’ mistakes or the bad practices that led to the fines. We believe that customers should not be impacted by fines imposed on water companies. The clause attempts to remedy that.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  35. The Conservative Government were the first Government to start addressing this issue by actually evaluating the data, monitoring overflows and monitoring outflows. I gently remind the hon. Member that when her party left power, only 7% of storm overflows were measured; when the Conservatives left power, 100% were measured. We were the first party to find that there was a problem. To return to the dental analogy, in the last parliamentary Session we tried to give the regulators more powers—more teeth—to go after the water bosses. We need to firm up how the regulator has been using those powers, so that we can hold the water companies to account. I agree that there is outrage across the House about how water companies have breached their terms of reference and broken the law. We have tried to hold them accountable.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  36. Can I just say that the previous Government went and looked for the problem, and found the scale of it? We all agree that it is a huge problem that needs to be addressed; we are not downplaying the scale of it. We collected data and were brave enough to say, “There is a problem.” Labour Members threw a lot of things at us during the passage of the landmark Environment Act 2021. They have made misleading comments about Conservative Members of Parliament, but we were the party that grasped the nettle and said, “There is a problem, and we need to look at it.” A lot of the amendments that were tabled to try to scupper the Environment Act were completely uncosted and would have cost taxpayers lots and lots of money. We tried to introduce practical, cost-effective, reasonable measures to address the scale of the problem that we unearthed.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  37. With the new clause, we want to ensure that when we rightly impose financial penalties on water companies there are no unintended consequences for the consumers we aim to defend by imposing the financial penalties in the first place. With that in mind, and given the aim of accountability, we sincerely hope the Government will support the new clause. Ultimately, we aim to press it to a vote. Ordered, That the debate be now adjourned.— (Jeff Smith.)

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  38. I agree. Amendments are easy to table with a view to obstruction and making political points, and those were not affordable and would not have been deliverable in any realistic timescale. Governments have to make realistic, cost-effective decisions that honour the taxpayer, and they have to be clear with the public about how such measures will be implemented and paid for. If the Government do not support our amendment, I hope they will clarify what steps they are taking to protect customers from the knock-on impact of fines. Unfortunately, in many industries when costs are imposed, customers sometimes pay higher prices.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (THIRD SITTING) · 2025-01-14 · READ IN HANSARD

  39. I thank the Minister for her comments. I am afraid that I am not fully reassured, and we would like to see provision in the Bill for any fines imposed on water companies to have a concomitant effect—a direct effect—on customer bills. This well-intended measure has been tabled to create a link between the two, so although I hear the Minister’s comments, we would still like to press new clause 3 to a vote. Question put, That the clause be read a Second time.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (FOURTH SITTING) · 2025-01-14 · READ IN HANSARD

  40. New clause 4 further aims to protect consumers from companies that are failing to prioritise their customers. Considering those points, the Opposition believe that the Government could move a bit on this, and enact democratic accountability with the statutory instrument. We hope that they will look on new clause 4 favourably.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (FOURTH SITTING) · 2025-01-14 · READ IN HANSARD

  41. If the Minister does not see the need for the amendment —I am not pre-empting her, but I imagine that is how her response will go—can she clarify how much borrowing the Government consider acceptable for a water company, and what they will do to reduce the impact on the consumer of excessive borrowing and spending? The new clause also limits the amount of dividends that can be paid out to shareholders if the water company has exceeded the borrowing limit. Should a limit be set, it would therefore make water companies fairer in their practices to bill payers, as when a company borrows it will have less of an impact on consumer bills. While in government, the Conservatives gave Ofwat the powers to link performance to payouts to shareholders and water company management.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (FOURTH SITTING) · 2025-01-14 · READ IN HANSARD

  42. I pay tribute to my colleague and friend Lord Roborough for working so hard to raise the issue of financial resilience in the other place through this amendment. We are not saying that a hard limit has to be set on borrowing levels, but merely giving the Secretary of State the option to do so if they feel it necessary to protect consumers from the negative effects of the water industry. I come back to the point I made in previous sittings: giving the powers to the Secretary of State, a democratically elected Minister in His Majesty’s Government, through statutory instrument, improves democracy and accountability for the water companies. I do not think the Labour Government need to shy away from this constructive amendment, which gives the Secretary of State the ability to hold the water companies to account, as we all want to do.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (FOURTH SITTING) · 2025-01-14 · READ IN HANSARD

  43. In other words, tackling the choices that water companies may have made, and will make in the future, including borrowing choices, is an issue that we are required to correct for the very future of our water industry. I reiterate my profound respect for the way that both the Minister and Baroness Hayman have conducted themselves in this debate. I note that Baroness Hayman expressed concern in the other place that putting a fixed percentage limit on borrowing could be a risk to investment at a crucial time for financial resilience and investment in the water industry. That is why my Conservative colleague, Lord Roborough, revised his amendment on that in the other place to give the Secretary of State the power to set limits by means of a statutory instrument.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (FOURTH SITTING) · 2025-01-14 · READ IN HANSARD

  44. It is clear that there is a direct link between financial resilience, problems connected to borrowing and the very survivability of the water firms. That should be of huge concern to all of us. Consumers are concerned that the provision of their water is at risk, and we as legislators must work out how to deal with the issues, including the financial implications, relating to the risk of nationalising the water companies that have no other way of providing services. That can reverberate back to the consumers again, who may face increased costs because of the financial support that the Government have to provide to keep water companies afloat.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (FOURTH SITTING) · 2025-01-14 · READ IN HANSARD

  45. I beg to move, That the clause be read a Second time. New clause 4 amends the Water Industry Act 1991 to insert new rules regarding the limits to the amount of money that can be borrowed by a water company, which the Secretary of State for the Department for Environment, Food and Rural Affairs would be able to enact by means of statutory instrument. Although we have discussed statutory instruments in Committee, the Opposition hope that the Government will recognise that this proposed statutory instrument power needs to be made. New clause 4 ensures that water companies are not excessively borrowing money, as that is ultimately bad for bill payers. At the heart of our concern about financial resilience is the borrowing in the industry and the over-leveraging because of that borrowing.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (FOURTH SITTING) · 2025-01-14 · READ IN HANSARD

  46. With this new clause, we are trying, constructively, to give the Government and the Secretary of State of the day the capability to act if they feel that the processes set up under the previous Administration and the new Administration are not working well. I urge the Minister to think again on this matter, and we will press the clause to a vote. Question put, That the clause be read a Second time.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (FOURTH SITTING) · 2025-01-14 · READ IN HANSARD

  47. We are again talking about—I know the Government Back Benchers are going to wince—teeth. In this case, regarding Ofwat’s and the Environment Agency’s capabilities, we are saying to the democratically elected Government of the day that there is an extra tooth to hold over Ofwat, and that if Ofwat is not doing its job then the Government can, potentially, step in. I take on board the comments about the commission but, to echo some of the comments of the hon. Member for Witney about being impatient for change, if this issue is going to the commission, and the can is being kicked down the track, that is disappointing.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (FOURTH SITTING) · 2025-01-14 · READ IN HANSARD

  48. I thank the Minister for the constructive tone with which she has engaged in this whole debate, but I think we are going round in circles. We are trying to hold the water companies to account, and the Government are saying, “It is okay, Ofwat can do that,” but we have heard contributions saying that Ofwat is not using its powers and we need to give it more powers. All we are doing, with this new clause, is putting in place the principle that the Secretary of State has the capability to oversee that. If the Secretary of State and the Government felt that Ofwat was doing what the legislation intended, they would not need to activate the new clause’s provisions. If, however, they did not feel that Ofwat was doing that, the new clause would give them that particular power.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (FOURTH SITTING) · 2025-01-14 · READ IN HANSARD

  49. We need to make decisions now that have an impact in the future, because in the long term we all want water quality to improve and to be protected for future generations. To achieve that, we need long-term and consistent attention and reflection on the policies being enacted and their effects. The new clause would help to facilitate that. Once again, transparency is not a hindrance; it helps everybody involved in managing the quality of our water system. Trust can be maintained only if everyone tries to do what is right and the Government, of whichever political party, are no exception. We need to be trying to do the right thing. Given that, His Majesty’s Opposition believe the new clause to be a highly reasonable and fair amendment to the Bill, and we hope that the Minister might support it.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (FOURTH SITTING) · 2025-01-14 · READ IN HANSARD

  50. We must also consider the evolving factors that affect the water industry and its ability to reduce water pollution. The flooding that we have seen in the past weeks has highlighted once again that our country is facing more regular extreme flooding events. In simple terms, more flooding means more excess groundwater and surface water that can enter the network, which creates more of a risk that sewerage overflows will be required to maintain our water systems. With such events becoming more unpredictable in their timing and yet more commonplace because of extreme weather events and the effects of climate change, looking at the evolution of issues such as this will be crucial to ensuring that any measures to improve overflows and water quality are successful in the long term.

    WATER (SPECIAL MEASURES) BILL [ LORDS ] (FOURTH SITTING) · 2025-01-14 · READ IN HANSARD