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Government to remove caps on share ownership in English water companies

The Prime Minister has announced that the strengthened Water Bill will remove existing limits on government ownership of shares in major water and sewerage companies in England.

  • The strengthened Water Bill will remove current limits on government share ownership in major water and sewerage companies in England.
  • The existing limits, which vary between 1-3%, will be removed to allow for increased public control.
  • New powers for local leaders to influence water companies' priorities will also be developed.

The Prime Minister announced today, 29 September 2026, that the strengthened Water Bill will remove current limits on government ownership of shares in major water and sewerage companies in England. This change aims to increase public control to deliver cleaner waters, fairer bills, stronger accountability, and better outcomes for customers and the environment.

The existing limits, set out in the Water Act 1989, vary between 1-3% depending on the company and are below 3% in each case. The government stated that removing these restrictions, which do not exist in other sectors, will allow it to act when water companies fail customers and the environment.

The government also plans to develop new powers for local leaders, including mayors and strategic authorities, to give them more influence over companies' priorities and mechanisms for accountability. Further details on the government's approach to the water industry are expected to be published later this year in the 10-year plan for Britain.

Why this matters: The removal of these caps gives the government greater flexibility to intervene in the water sector, potentially influencing ownership models and providing support where needed.

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