Steve Reed, Secretary of State for Environment, Food and Rural Affairs, leaving 10 Downing Street.
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WATER bills are set to soar by 30 per cent over the next five years — as a damning review today called for regulator Ofwat to be scrapped.

Sir Jon Cunliffe, who led the probe, said households are paying the price for years of underinvestment and warned “massive” upgrades are now needed.

Steve Reed, Secretary of State for Environment, Food and Rural Affairs, leaving 10 Downing Street.
Environment Secretary Steve ReedCredit: Getty
Sewage pipe overflowing onto a sandy beach.
The Environment Secretary vowed to halve sewage pollution by 2030 using £104 billion of investmentCredit: Getty

He told the BBC there has been a “really huge” rise in bills and they are going to rise by another 30 per cent in real terms.

The report released today suggests eliminating Ofwat and creating a unified, “powerful” regulator to rectify what he described as a “fragmented and overlapping” system.

The former Bank of England bigwig slammed the existing mess of regulators – and said only a “joined-up” and “powerful” single body could fix it.

His long-anticipated review declared it was time to dissolve Ofwat, which handles bill settings and oversees spending, and eliminate the Drinking Water Inspectorate, in addition to removing powers from the Environment Agency and Natural England.

Sir Jon cautioned: “Restoring trust has been a focal point in our process. Trust that bills are reasonable, that regulation is efficient, and that water companies will prioritize the public interest.”

He added: “This is a complex sector… responsible for the second-largest infrastructure programme in the UK. Resetting this sector and restoring pride in the future of our waterways matters to us all.”

The 217-page report – ordered after public fury over sewage spills, soaring bills and sky-high exec bonuses – calls for a massive overhaul not seen since privatisation.

Environment Secretary Steve Reed piled in on Sunday, admitting: “Ofwat is clearly failing.”

Instead of several overlapping bodies, nine new local water authorities – eight in England, one in Wales – would deliver projects that match local needs and give communities a louder voice.

Sir Jon’s review said the shake-up must also bring tighter rules on bosses and owners, with better protection for customers and the environment.

It comes as Mr Reed prepares to unveil a new legally binding water ombudsman, expand the Consumer Council for Water, and bring the system into line with other utilities.

He will today say the report is a wake-up call to make sure “the failures of the past can never happen again.”

Over the weekend, the Environment Secretary vowed to halve sewage pollution by 2030 using £104 billion of investment.

Tory Victoria Atkins warned Labour must be “transparent” about what replaces Ofwat – but accused the party of copying old Tory ideas.

The final report follows nine months of digging, with over 50,000 public responses helping to shape it.

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