Residents across Kent and Sussex have endured a severe water crisis, with over 30,000 homes left without supply for up to six days in January 2026. The disruption forced families to rely on neighbours' toilets and wash their children using bottled water.
A System Under Strain
This incident followed closely on the heels of another major failure, where a water treatment centre shutdown left tens of thousands of homes in Tunbridge Wells without water for a staggering 14 days. The repeated crises have sparked public outrage and led to calls for the resignation of South East Water's chief executive, amid accusations of neglecting ageing infrastructure.
While criticising water companies may offer temporary relief, it does not address the core problem: the UK's water network is old and requires massive, urgent investment. Schools and hospitals face closures without it, and public health is at risk.
The Case for Private Investment
In response to growing calls for nationalisation, former Labour MP Natascha Engel argues that such a move would be counterproductive. She states that the government lacks both the funds and the operational capacity to run the water industry, and that nationalisation would be the surest way to halt vital investment.
Only the private sector has the financial resources necessary to fund the colossal level of investment required for new reservoirs, pipes, and treatment works, Engel contends. The goal is not to give companies free rein to pollute, but to secure the capital needed to modernise the entire system.
Finding a Partnership for Growth
Environment Secretary Emma Reynolds has pledged to fix the sector. Engel, who knows Reynolds well, highlights her unique experience leading a major financial trade body, TheCityUK. This background means Reynolds understands that investors need long-term policy certainty and a return on investment to commit to public utilities.
The solution, according to Engel, is a partnership. The government must provide stable regulations and planning laws, while the industry must commit to investing and being a good neighbour. She points to the UK's oil and gas sector as an example where robust, sensible regulation has stimulated growth and high safety standards.
If this partnership succeeds and the public sees tangible improvements, it will be easier to justify the need for companies to make a profit to fund future investment. The future of the UK's water supply, and by extension its economic wellbeing, depends on this collaborative approach to solving a deep-rooted infrastructure crisis.
