UK MPs Call Root-and-Branch Reform Over Failing Water Sector

A series of reports from the UK Parliament's Environment, Food and Rural Affairs Committee highlight a profound crisis in the water sector, describing it as failing and suffering from a culture that is 'deaf to the crisis' it faces. MPs call for root-and-branch reforms, including stricter oversight of financial incentives for senior executives, greater transparency, and consideration of different corporate ownership models to improve leadership and accountability. The committee criticizes water companies for prioritizing investor returns and executive bonuses over infrastructure investment and environmental responsibilities, despite repeated poor performance and significant pollution incidents. There is a strong recommendation that the government should be prepared to use temporary nationalization powers to address these issues. The reports also emphasize the need for a regulatory overhaul to focus on reducing pollution, ensuring responsible ownership, and enhancing the sector's long-term resilience. This crisis extends to concerns over the complex financial structures of water companies, which undermine public trust and service quality.