I am delighted to be here at the first Economist Water Summit.
Since day one, this government has been determined to take forward water reform because we inherited a system that was failing. A system that was failing customers, and the environment.
When I was appointed Environment Secretary back in September, I made fixing the water system my number one priority.
We are delivering a once-in-a-generation reform that we have set out in our recent White Paper.
We have also secured £104 billion pounds of private sector investment over the next five years to fix our infrastructure and create 30,000 skilled jobs across the country. And we have kickstarted the building of nine new reservoirs by 2050.
Looking around this room, I see the people who will shape the future of our water system in partnership with us. Investors. Operators. Engineers. Innovators. Regulators. From across Europe and beyond. Each of you brings something essential to the table.
And this is an exciting time for all of us. New technologies. New investment. New ways of working. The opportunities are huge and we are keeping our foot firmly on the pedal.
A year ago the Water Special Measures Act introduced tough new rules to strengthen accountability.
Last July, Sir Jon Cunliffe delivered the Independent Water Commission review.
And a few weeks ago, we set out our ambitious and positive vision for reform in the Water White Paper.
We will shortly publish our Transition Plan – a roadmap giving clear timelines, milestones, and expectations – for government, regulators, and companies. So everyone can plan with confidence.
And we will appoint the leadership of the new regulator at the earliest opportunity.
But reform isn’t just about regulation and investment. It is about people.
I recently visited Severn Trent’s training academy, where I met apprentices, and saw firsthand the skilled jobs our reforms will create.
I also recently met Olympic rower Imogen Grant, ambassador for the Rivers Trust, who spoke passionately about water pollution and its impact on local communities.
And I’ve spoken with residents in Tunbridge Wells, hearing loud and clear their concerns about water supply.
Every conversation reinforces why this reform is so badly needed – and why we together must deliver.
At the heart of that reform is a fundamental shift from a fragmented regulatory landscape to a single, integrated water regulator.
One clear point of accountability for water companies.
One coherent set of expectations and incentives.
And one body with the expertise and authority to make decisions that stick.
And we aren’t stopping there.
We are shifting from self-monitoring to open-monitoring creating stronger oversight and transparency for customers.
We are shifting from a one-size-fits-all approach to a supervisory model that recognises different companies face different challenges. An approach we’ve seen works well here in the city.
And we are shifting from a fix-on-failure approach to prevention-first-regulation – with new resilience standards, a Chief Engineer and an engineering capability in the new regulator, and a new MOT-style approach that identifies problems early.
But better regulation alone won’t fix decades of underinvestment.
Aging assets, climate risk, and rising demand mean sustained investment will be needed for decades to come.
The £104 billion pounds in private-sector investment for the water industry over the next five years is significant. But we will need more investment.
The government is creating the conditions for that to happen.
We will move beyond short-term planning cycles that have held the sector back.
Strategic guidance will now be published across 5, 10 and 25-year horizons providing long-term predictability to the water companies, investors, supply chains, and others about the national priorities we will be collectively working towards.
We also want to enhance competition for major projects.
Building on the great success of Thames Tideway, we are amending regulations and rules so more large projects can be competitively financed and allow third parties to design, build and operate infrastructure more efficiently.
These changes will create a clear, more consistent competitive framework across the sector.
However, competition is only part of the picture. Our reforms will also deliver a fairer, more predictable approach to returns – one that recognises and reflects the risk that investors take.
This is about creating an attractive, sustainable investment environment. One that works for long-term investors who understand this industry and want to be its custodians.
And that investment delivers far more than pipes and pumps.
Investment in water infrastructure unlocks growth.
It enables homes. It supports livelihoods. It drives innovation.
Every new housing development depends on water capacity. Every data centre, every hydrogen facility, every advanced manufacturing plant needs reliable water services.
So we are fast-tracking the infrastructure decisions that will turn ambition into reality, consolidating a fragmented planning system into clearer, faster routes to delivery.
But as demand grows, we must use water more efficiently. Reducing consumption is as important as increasing supply.
From smart meters that can help households cut water use by up to 17 percent, to digital monitoring that predicts problems before they occur, to water recycling and nature-based solutions – these are the technologies and innovations that will define the sector’s future.
And government is creating the conditions for them to flourish with clearer planning, streamlined regulation, and by working in partnership with you.
The spirit of partnership extends to everything I have spoken about this morning.
We cannot deliver this transformation alone. The expertise in this room, the commitment you bring, the capital you invest – these are vital ingredients to turn ambition into reality.
We must act together to take forward this once-in-a-generation water reform to deliver better outcomes for consumers, the environment, and investors.
Thank you.