Water companies should be owned by billpayers, not controlled by mayors

​The Liberal Democrats have sharply criticised proposals by Prime Minister Andy Burnham to introduce mayoral oversight for water utilities, arguing instead that the water sector should be transferred directly into public and mutual ownership.

​The comments follow reports that the government is preparing to announce a 10-year water strategy featuring nine new regional bodies designed to supervise water firms. Under the reported framework, regional mayors and local leaders would sit on oversight boards to monitor performance, set objectives, and increase local accountability.
​Rejecting the approach, Liberal Democrat Environment Spokesperson Tim Farron MP argued that placing politicians on regulatory boards fails to address the underlying issues within the water industry.
​"After a summer of hosepipe bans and sewage being dumped at the first sight of rain, Andy Burnham thinks the answer is more politicians on boards," Farron said. "Water companies shouldn't be controlled by mayors, they should be owned by the people. No one is asking for more politicians and everyone knows there are better solutions."
​Farron warned that adding political oversight without altering the ownership structure of utility companies would ultimately leave consumers vulnerable to rising costs and financial instability.

​"This isn't a solution, it's a stitch-up for the very water companies who caused this mess," he stated. "Bills will keep going up, sewage will keep going in, and when these companies go under it'll be customers who bail them out."

​Calling for a structural overhaul of the sector, Farron urged ministers to abandon private equity models and pivot towards customer-owned mutual structures.
​"The only real fix is taking water out of the hands of profiteers and putting it into mutual ownership, run by and for the people who actually use it," Farron added. "Everything else is window dressing."
​The position aligns with broader Liberal Democrat policy on utility reform. The party has repeatedly advocated transforming monopoly water providers into public benefit companies and customer-owned mutuals, legally binding them to prioritise environmental protection and service delivery over shareholder returns. Official party proposals also include replacing the current regulator, Ofwat, with a stronger Clean Water Authority equipped with the powers to enforce strict targets on sewage discharges, block executive bonuses, and revoke operating licences for failing utilities.

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