MEZIESBLOG

Nationalizing water firms would cost up to £100bn and “not resolve the problems” facing customers, the environment secretary has said.

Bringing the companies back into public ownership was ruled out by Steve Reed as he set out an independent review into the water industry. 

Public anger has been mounting recently over rising bills and sewage pollution. 

Mr Reed told the House of Commons that the money to pursue nationalisation “doesn’t exist”, 

He said rivers, lakes and seas would be “filled with even more sewage and pollution” during the time it would take to unpick current models of ownership.

“The reason I’ve ruled out nationalisation is because that would not resolve the problems that we face,” he added. 

“We see at the Olympics in France the River Seine unable to be used for swimming because of pollution – that is a state-owned water system. We see the problems in Scotland – that is a state-owned water system as well.

“The problems are those of governance and regulation. If we were to look at nationalisation that would cost up towards £100 billion of public money, money that doesn’t exist.” 

The UK and Welsh governments announced what they said was the largest review of the sector since privatisation earlier today. 

It will focus on the water sector and its regulation, including wholesale reform of Ofwat.