Eight regional water councils will be created in England to give communities a say over billions of pounds of water investment, the government said on Thursday.
The Department for Environment, Food and Rural Affairs said the councils would bring together local leaders, customers and businesses to set priorities for their regions, including sewage and water quality, flooding, drought and future water supplies.
Decisions on the water system are currently taken nationally, even though communities face very different problems. Defra pointed to Lake Windermere, where sewage discharges have damaged local tourism, and to Cambridge, where drought and water shortages have stalled growth.
Prime Minister Andy Burnham said people were desperate for change and that, for the first time, local people would have a real say over what they need from their water company.
He listed cleaning up polluted rivers, building new reservoirs and protecting homes from floods as examples.
Mayors will also receive new powers, through the strengthened Water Bill, to hold water companies to account for their performance.
Each council will draw up a plan setting out the biggest pressures on its region’s water system, the choices to be made and the public and private investment that can help address them.
Local leaders have been asked to submit proposals on how they want to run the new bodies by the end of the year.
The government said the councils would build on existing regional work. Greater Manchester’s Integrated Water Management Plan has brought together planning, regulation and investment, with improved drainage supporting town-centre regeneration. In East Anglia, Water Resources East has brought partners together to tackle severe water scarcity.
Environment Secretary Dame Angela Eagle said she was determined to put the public at the heart of decision-making, shaping what their bills would be spent on. She said the water industry had for decades failed the people and places it was meant to serve.
The announcement follows her setting expectations for the next Price Review, in which she warned water companies they must provide better value for money for struggling households.
Ministers are also introducing new powers for automatic fines, and criminal liability for water bosses who cover up or hide sewage spills.
Tracy Brabin, Mayor of West Yorkshire, said household bills in her region were set to rise by more than 40 per cent after years of underinvestment. She said the regional council would help ensure Yorkshire Water put people above profit.
Bev Craig, Mayor of Greater Manchester, called the reforms “an important step forward”. Claire Ward, Mayor of the East Midlands, called them “a positive step” towards a water system that works better for local people.
Richard Benwell, chief executive of Wildlife and Countryside Link, said regional control of water investment could be a victory for people and nature. He added that the councils must have “the powers and funding to deliver”, including the ability to curb pollution from agriculture, chemicals and wastewater.
Mark Lloyd, chief executive of The Rivers Trust, said it was encouraging to see the government recognise the need for regionwide systems planning, which the charity had long called for.
He said it would work with local leaders to shape what that looks like in practice.
Further details on the government’s approach to the water industry will be set out in the 10-year plan for Britain, due to be published in 2026.