Labor is drawing up plans to create a new water regulator as it seeks to address public anger over the dumping of raw sewage into Britain’s rivers, lakes and beaches.
Under the proposals, a Labor government would merge most of the environmental agencythe pollution watchdog, with financial regulator Ofwat and the Drinking Water Inspectorate to set up a new watchdog, according to people familiar with the plans.
The party would also create a separate flood agency with the remains of the Environment Agency to protect communities in England and Wales in the event of extreme weather events.
With a general election due next year and Labor posting solid gains in the local elections this week, the focus is increasingly on the party’s political platform.
Public outrage around water companies’ practice of discharging raw sewage and stormwater into UK waterways has become a political priority in recent months.
The scandal sparked widespread protests and led to beaches being closed for swimming for several days last summer with a repeat scheduled for this year.
Ofwat regulates the water and sewerage industry in England and Wales, which is made up of privatized regional monopolies.
It defines how much companies can charge customers and their level of infrastructure investmentwhich is reviewed every five years.
Labor would keep that regulatory model but extend the five-year term to encourage longer-term capital planning, according to people familiar with the plans.
Scotland’s water system would remain in state hands while Wales could also receive its own separate regulation with a separate economic regulator.
Labor declined to comment on the plans, but shadow environment secretary Jim McMahon has previously criticized the current system of water regulations as not ‘fit for the future’. Ofwat and the Environmental Agency have been contacted for comment.
Figures familiar with Labor talks said its proposals to overhaul the regulatory system have not been finalized and may not be announced until the party’s autumn conference in Liverpool.
Labor’s proposed reforms mark a sharp drop from former party leader Jeremy Corbyn’s overt commitment to renationalize public water services three decades after their privatization.
Cat Hobbs, director of We Own It, a pro-nationalisation campaign group, said: ‘Water companies and regulators have had over 30 years to get it right and they have failed.
“We need full public ownership and not more regulatory maneuvering so that the money households pay is used to stop sewers and invest in infrastructure, not pay out dividends and CEO salaries. “
Labour’s proposals could spark a clash with unions such as the GMB and Unite, which favor nationalisation, as the party enters into consultation with its members and other groups through its national political forum.
Therese Coffey, Conservative Environment Secretary, insisted the Government had its own ‘fully costed and credible’ plan, telling the House of Commons in late April: ‘Labour says its plans will have no d ‘impact on household bills, but he can’t say how much they will cost.’
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