Water (Special Measures) Bill Report Stage: Amendment 9

Parliament voted on 28 January 2025 to reject Amendment 9 to the Water (Special Measures) Bill at Report Stage (the detailed scrutiny stage in the Commons). The amendment, tabled by the Liberal Democrats, would have changed the Bill so that creditors rather than consumers would bear any financial shortfall arising from government assistance given to a water company in special administration. It was defeated by 321 votes to 73. The practical consequence of the defeat is that clause 12 of the Bill remains unchanged. Under that clause, the Secretary of State can require a water company in special administration to recover a financial shortfall from its consumers through higher bills. Had Amendment 9 passed, that burden would instead have fallen on the company's creditors. The vote therefore preserves the government's ability to recoup the cost of keeping water services running during a company failure from bill payers rather than investors, at a time when bills are already rising significantly. The vote divided almost entirely along party lines. All 287 Labour MPs and all 31 Labour and Co-operative MPs who voted did so against the amendment. The Liberal Democrats provided the bulk of the 73 ayes, with 61 of their MPs supporting it, joined by the Greens, the Democratic Unionist Party, the Ulster Unionist Party, Traditional Unionist Voice, and several independents. The Conservatives registered no votes on either side, and Plaid Cymru had no vote recorded. The result was never in doubt given Labour's commanding majority, but the division reflects a broader cross-party pressure on the government to go further on water industry reform.