The cross-party House of Lords Industry and Regulators Committee is warning that failures by Government to give clear guidance to regulators on economic growth could drive new investment away from the UK.

Ofwat has published a new report setting out the economic growth case for investment in water supply infrastructure generally and specifically looks at the contribution of the Major Projects Programme Ofwat is supporting.

The House of Lords Industry and Regulators Committee will hear more evidence from regulators this morning on how on how they support economic growth in its ongoing inquiry into the relationship between regulators and economic growth.

In a new report published this morning, the National Audit Office is calling on HM Treasury and the Department for Business & Trade to provide improved support for regulators to kickstart economic growth.

The House of Lords Industry and Regulators Committee is continuing its inquiry into the relationship between regulators and economic growth in another live evidence session with policy experts tomorrow.

Following a report commissioned by Ofwat from Baringa Partners on how Ofwat's regulation impacts on economic growth which was published in April 2025, Ofwat has commissioned a further piece of consultancy work on the economic growth agenda from consultancy firm KPMG LLP worth an estimated £98,580 (inc VAT).

The Government has confirmed it intends to bring regulators Ofwat, Ofgem, and Ofcom and their regulatory functions into scope of the Growth Duty measure in early 2024.

The Government is considering extending a new economic Growth Duty to Ofwat which would see the water sector regulator required to “have regard to the desirability of promoting economic growth” when carrying out core functions.