Water companies to be overseen by regional councils under Government shake-up

Eight regional councils will give local communities more control over how water is managed in their areas, the Government has said. The Prime Minister said the plans would give local people “a real say” over what they needed from their water company, from cleaning up polluted rivers to protecting homes from flooding or building new reservoirs. The new councils aim to change the current system, where decisions about water are taken nationally, despite communities facing varying challenges in different regions – from pollution in Cumbria’s Lake Windermere harming tourism to drought in Cambridge stalling growth, officials said.

The bodies, which will bring together 10 to 15 people from across the region including mayors or local authority leaders, customers, farmers and developers, will cover regions based on river basins and water supplies. It is expected they will agree regional priorities on flooding, drought, water quality and supply, reflecting the views of billpayers. Read More: Danny Dyer delivers petition to No 10 calling for nationalisation of water companies Read More: Water companies to be blocked from hiking bills during drought but government needs to 'get a grip' on the industry These will feed into the next round of water industry planning and the 10-year flood investment programme – giving local people a say over billions of pounds of investment, the Environment Department (Defra) said.

The plans are the latest step by the Government to tackle issues in the water sector, amid widespread anger over the polluted state of England’s rivers, lakes and coasts, rising bills, bonuses and shareholder payouts for privatised water companies. It comes after the sector’s environmental performance fell to a record low in a report by regulators, with eight of the nine water companies in England either rated as “poor” or “requiring improvement” in 2025 and only Severn Trent receiving the highest rating.

Mr Burnham said: “I know how desperate people are for change when it comes to water. “I share their frustration at seeing sewage and pollution blight our rivers, lakes, and seas, while decisions about their local areas are taken miles away. “That’s not right. So for the first time, local people will have a real say over what they need from their water company, whether that is cleaning up polluted rivers, building new reservoirs or protecting homes from floods.

“That is what moving power closer to communities looks like, making sure local voices are heard and local priorities come first.” Environment Secretary Dame Angela Eagle said the water industry had failed to work for people and places it was meant to serve “for decades”. She said: “I am determined to put the public at the heart of decision-making – shaping what their bills will be spent on – so they can see real differences happening in their communities.”