The Government has announced the independent Water Commission is being set up as firms plead to be allowed to hike customer bills

A new watchdog will deliver a desperately-needed shake-up of the water industry, including criminal charges against bosses, ministers have announced.

The independent Water Commission is being set up to tackle the shameful state of rivers, lakes and seas in the UK. And it will also hold failing leaders to account and ensure future demands are met.

The Government says the watchdog will carry out the biggest review of the sector since privatisation in the late 1980s. It will be headed by Sir Jon Cunliffe, former Deputy Governor of the Bank of England.

Environment Secretary Steve Reed said: “Our waterways are polluted and our water system urgently needs fixing.” The new watchdog will set out recommendations to the Government next year.

It comes as regulator Ofwat revealed water companies have asked to hike consumer bills by even more than they originally requested. The latest requests would see the average bill in England and Wales grow by 40% by 2030 – rising to £615 per year.

Ofwat is due to make a final decision on bills increases on December 19. Lib Dem Environment spokesman Tim Farron said: “Far more urgency is needed from the government on tackling the disgraced water industry, which has been allowed to get away with endless environmental scandals for too long.” He said that the review was welcome, but said: “It should not be used as a tool to kick the can down the road on immediate reforms.”

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