Calls to bring the water industry back into public ownership could result in savings of £22 billion over the next five years, a Labour MP told Parliament during a Westminster Hall debate on Tuesday.

Paul Davies, Labour MP for Colne Valley, argued that reversing the privatisation of the water sector—which began under Prime Minister Margaret Thatcher in 1989—would help restore public confidence in a system facing widespread criticism. Since privatisation, Davies noted, investors, many based overseas, have received substantial dividends, while customer bills have increased and infrastructure has deteriorated.

“Private companies have paid out around £83 billion in dividends, while loading the companies with debt,” Davies said. “Crucial infrastructure has been left to fail. Not a single new reservoir has been built since 1992. And water companies have seen the waste of around three billion litres of water a day through leaky pipes.”

His remarks highlight growing public frustration over service quality, environmental concerns, and rising costs. Recent survey data shows that 82% of the public support returning the water industry to public ownership—up from 59% in 2017—indicating a significant shift in public opinion over the past decade.

Davies contended that nationalisation would redirect funds currently paid to shareholders and creditors—amounting to approximately £22 billion over five years—toward critical infrastructure upgrades, debt reduction, and improved operational efficiency by company staff.

“It beggars belief to see the money being siphoned off from the water sector into private hands,” he added.

Since privatisation, the water industry has faced mounting scrutiny for environmental failures, including sewage leaks harming rivers and beaches, alongside concerns about affordability. Critics of the privatised structure argue the current model prioritises shareholder returns over investment in maintenance and expansion.

Supporters of private ownership maintain that market competition drives efficiency and innovation, though opposition voices increasingly call for reform or reversal amid growing public and political pressure.

The debate comes as policymakers consider long-term strategies to address the water sector’s challenges, balancing financial sustainability, environmental protection, and consumer interests. No government announcement on nationalisation has been made to date.