The government announced on Thursday 5 November 2026 that England will get eight new regional water councils. Each one will bring local leaders, customers and businesses together to set the priorities for water investment in its region, covering sewage and water quality, flooding, drought and future water supplies. Mayors will also get new powers, through the strengthened Water Bill, to hold water companies to account for their performance. Nothing changes on your business water bill today. Local leaders have until the end of the year to say how they want the councils to run.
Businesses are named as members of these councils, which means the firms paying the bills will have a voice in how the money is spent.
What is changing?
Today, decisions about the water system are taken nationally. The government says that doesn’t work when regions face very different problems, and it gave two examples: sewage discharges at Lake Windermere have damaged local tourism, and drought and water shortages in Cambridge have stalled growth.
The eight councils are meant to fix that. Here’s what the government has announced:
- Who sits on them: local leaders, customers and businesses. City AM reports the councils will be made up of mayors or local authority leaders, farmers, developers and customers. The government hasn’t yet said which mayors or leaders will take part.
- What they do: each council will draw up a plan setting out the biggest pressures on its region’s water system, the choices that need to be made, and the public and private investment that can help address them.
- What they influence: billions of pounds of investment in water and flood infrastructure.
- New powers for mayors: the strengthened Water Bill will give mayors powers to hold water companies to account for their performance.
- The Thames region: City AM reports that one of the eight councils will cover the Thames region, which includes London. The Environment Secretary, Dame Angela Eagle, is writing to all mayors, including Sir Sadiq Khan, to discuss the plans.
The Environment Secretary said she wants the public “shaping what their bills will be spent on, so they can see real differences happening in their communities”. Prime Minister Andy Burnham said local people will “have a real say over what they need from their water company, whether that is cleaning up polluted rivers, building new reservoirs or protecting homes from floods”.
Where did the idea come from?
The government points to two partnerships that already work this way:
- Greater Manchester: its Integrated Water Management Plan has brought together planning, regulation and investment, and improved drainage has helped support town-centre regeneration.
- East Anglia: Water Resources East has brought partners together to tackle severe water scarcity, including the limits it puts on growth in Greater Cambridge.
The new councils are meant to take that approach across England.
When will it happen?
- 5 November 2026: the eight councils announced.
- By the end of 2026: local leaders submit proposals on how they want to run the new bodies.
- Later this year: the government publishes more detail on its approach to the water industry in its 10-year plan for Britain.
- After that: each council draws up its regional plan.
The government hasn’t given a date for the councils to start work or for the Water Bill’s new mayoral powers to take effect.
How does this fit with the wider water shake-up?
This is one part of a much bigger overhaul. City AM reports that Ofwat, the water regulator, is set to be abolished; we covered the plans when the Ofwat overhaul was first proposed. The government also says water companies face new powers for automatic fines and criminal liability for water bosses who cover up or hide sewage spills. And the Environment Secretary has set out expectations for the next Price Review, the five-yearly process that decides how much water companies can charge and spend, warning companies they must give better value for money to struggling households.
Thames Water’s future is still unresolved. City AM reports that the company, which serves 16 million customers in London and parts of the South East, carries around £20 billion of debt. A group of its creditors, London & Valley Water, says it needs at least £10 billion of new private money over the next few years and has submitted plans to recapitalise the business.
One figure needs care. The Mayor of West Yorkshire, Tracy Brabin, said household bills in her region are “set to rise by over 40%”. That’s a household figure and her own statement. The announcement doesn’t put a number on business bills.
What does this mean for your business?
You don’t need to do anything today. But if your business depends on water, or has been hit by flooding, drought or a hosepipe ban, these councils are where regional priorities will now be set.
It helps to know how your bill works. Since the business retail market opened in 2017, businesses in England can choose their water retailer, the company that bills you and handles your account. The regional water company still owns the pipes and sewers serving your premises, and it’s their investment these councils will help shape. So the councils will shape what your regional water company invests in, while your choice of retailer is still yours to make.
The market behind that choice is changing too. MOSL, which runs the business water market, published its first five-year strategy on 4 November 2026. Its priorities for April 2027 to March 2032 include making better use of smart meter data and reducing business water demand. MOSL says the strategy recognises the significant uncertainty around water sector reform.
Our take: we welcome anything that puts investment where a region needs it. The government’s own examples, tourism hit by sewage at Windermere and growth held back by water shortages in Cambridge, are business problems. Investment that fixes problems like these is good news for the businesses that rely on that water.
Here’s what we’d do now:
- Check what you’re paying: we compare business water retailers and present the options that best suit your business.
- Know your contract end date: we always advise arranging your next contract as early as possible, so you’re not left with short-notice prices.
- Watch your regional council: once your region’s council is set up, its plan will show where the money is going. We’ll cover each plan as it’s published.
Talk to our water experts
Got questions about your business water contract, or who you’re paying? Book an appointment with our team, get a quote, or call us on 01273 914000. Find out more about our business water service.