Water Bill to remove limits on government share ownership in major English water and sewerage companies

LONDON, Sept 29 — The Prime Minister announced on Sept 29 that the strengthened Water Bill will remove current limits on government ownership of shares in the major water and sewerage companies in England, so government can act where water companies let down customers and the environment.

The limits are set out in the Water Act 1989 and vary between 1-3%, the government said. The exact limit varies by company and is below 3% in each case.

A related restriction on the government acquiring shares in those companies will also be removed, according to the announcement.

The government said the change will remove a historic restriction on government share ownership, which it said does not exist in other sectors.

The government said the long-term future of England's water sector relies on continued private sector investment, and that removing the cap does not change that.

The announcement gives the government flexibility to consider a wide range of possible future interventions, including on ownership models, the government said. It said it is committed to delivering the reforms within the fiscal rules.

The Prime Minister also said mayors and strategic authorities currently have far too little influence over companies' priorities, according to the announcement. New powers for local leaders will be developed as part of the government's water sector reforms.

The government said it will set out further details in the 10-year plan for Britain, to be published later this year.