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Steve Reed has conceded that the bulk of the £104bn of water industry investment which he boasts Labour has attracted since coming to office will come from bill payers.

In an interview with Sky News, the environment secretary sought to blame the previous Tory government for a string of high profile investors walking away from the sector over the last year.

Mr Reed does not accept claims that further threats to jail water bosses and promises to curb price rises have deterred investment.

Instead, he told Sky News that “by bringing in the £104bn of private sector investment that we secured at the end of last year, we can make sure that the investment is going in to support” the industry.

When challenged that the £104bn was total expenditure not total investment, and that bill payers would pay back this expenditure over the coming decades, Mr Reed conceded this was right – and the money ultimately is coming from bill payers.

“The money comes in from investors up front so we can do that spending straight away,” he said.

“Over decades, the investors got a modest return from the bills that customers are paying. That’s how investment works.”

Some investors have warned they do not think it viable to fund the UK water sector because of the hostile political tone of ministers and lack of certainty.

Ministers have said the government does not want to renationalise water as it would mean years of legal wrangling and cost a lot of money.

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Minister rules out nationalising the water

Labour has launched a record 81 criminal investigations into water companies over sewage dumping since winning the election last year.

Water company bosses could be jailed for up to five years and the companies fined hundreds of millions of pounds if they are found guilty.

Mr Reed committed to not interfering with those prosecutions, saying it would be “highly inappropriate” for any minister to do so.

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He rejected suggestions ministers will be pressured to ensure water bosses do not serve jail time as this will deter investors.

“It’s a judicial process, it would be highly inappropriate for any ministerial interference in the process,” Mr Reed said.

“They will work their way through the court system, as they should do, and ministers will decide on sanctions after.”

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Kemi Badenoch accuses Sir Keir Starmer of ‘lying’ about Peter Mandelson prior to sacking him

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Kemi Badenoch accuses Sir Keir Starmer of 'lying' about Peter Mandelson prior to sacking him

Kemi Badenoch has accused Sir Keir Starmer of “lying to the whole country” about what he knew regarding Peter Mandelson’s correspondence with Jeffrey Epstein.

Lord Mandelson was this week stripped of his position as ambassador to the US amid fresh scrutiny over his years-long friendship with the convicted paedophile.

The prime minister initially defended the Labour peer but removed him from his post on Thursday after newly seen emails revealed he sent messages of support to Epstein even as he faced jail for sex offences in 2008.

Politics latest: ‘Unite the Kingdom’ rally takes place with counterprotest nearby

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Lord Mandelson – the unanswered questions

The Times has now reported that Downing Street and the Foreign Office were aware of the emails on Tuesday – a day before Sir Keir gave Lord Mandelson his backing at Prime Minister’s Questions (PMQs).

In a post on X, Conservative leader Ms Badenoch wrote: “Looks like the Prime Minister and Labour MPs spent the week lying to the whole country about what they knew regarding Mandelson’s involvement with convicted paedophile Jeffrey Epstein.”

She continued: “If No 10 had those emails for 48 hours before acting, it means he lied at PMQs and ministers lied again about new additional information. These are yet more errors of judgment.

“The Prime Minister has very serious questions to answer. The only way to clear this up is full transparency about who knew what, and when.”

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Sources said Sir Keir was not aware of the contents of the emails when he told MPs he had “confidence” in Lord Mandelson.

A media enquiry outlining details of the messages between Lord Mandelson and Epstein was sent to the Foreign Office on Tuesday, and passed on to Number 10.

Sir Oliver Robbins, the permanent under-secretary at the Foreign Office, asked Lord Mandelson about the emails on Tuesday, but did not receive a response until the following day.

Sir Keir is understood not to have been aware of the contents of the emails until Wednesday evening.

Speaking to Sky News, one Labour MP has called for more information on what happened behind closed doors at No 10 this week.

Jo White, MP for Bassetlaw, in Nottinghamshire, said: “We cannot move on until we find out how he [Sir Keir] was not briefed properly before PMQs.”

“What he needs to do now is get on top and sort out this mess,” she said. “Suspend the whip from Peter Mandelson and expel him from the party, then have a transparent enquiry about what went wrong at No.10.”

This came as Sir Keir enjoyed some time away from Downing Street.

The prime minister was on Saturday pictured watching Arsenal face Nottingham Forest in a Premier League match at the Emirates Stadium.

Arsenal fan Sir Keir cheered on his side as they won 3-0. Pic: Reuters
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Arsenal fan Sir Keir cheered on his side as they won 3-0. Pic: Reuters

Lord Mandelson’s exit came after less than a fortnight after another high-profile loss for the Labour government, as Angela Rayner was forced to quit as deputy prime minister and deputy Labour leader over her tax affairs.

As Sir Keir has faced a scandal-hit start to the month, a growing number of Labour MPs have begun calling his leadership into question.

Read more from Sky News:
Mandelson’s exit leaves Trump visit in the lurch
What we know about Mandelson-Epstein relationship

Lucy Powell, who is running to replace Ms Rayner as Labour’s deputy leader, has called for a “change of culture” at Downing Street.

“We’ve got a bit of a groupthink happening at the top, that culture of not being receptive to interrogation, not being receptive to differing views,” she told The Guardian newspaper.

Meanwhile, senior Labour MP Emily Thornberry has written to the new foreign secretary, Yvette Cooper, demanding answers about the vetting process for UK diplomats in the wake of Lord Mandelson’s sacking.

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Man admits arson after major fire at MP Sharon Hodgson’s constituency office

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Man admits arson after major fire at MP Sharon Hodgson's constituency office

A man has admitted arson after a major fire at an MP’s constituency office.

Joshua Oliver, 28, pleaded guilty to starting the fire which destroyed the office of Labour MP Sharon Hodgson, at Vermont House in Washington, Tyne and Wear.

The fire also wrecked a small charity for people with very rare genetic diseases and an NHS mental health service for veterans.

The guilty plea was entered at Newcastle Magistrates’ Court on the basis that it was reckless rather than intentional.

Hodgson, who has been an MP since 2005, winning her seat again in 2019. Pic: Reuters
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Hodgson, who has been an MP since 2005, winning her seat again in 2019. Pic: Reuters

The Crown did not accept that basis of plea.

Oliver, of no fixed address, had been living in a tent nearby, the court heard.

Northumbria Police previously said it was “alerted to a fire at a premises on Woodland Terrace in the Washington area” shortly after 12.20am on Thursday.

“Emergency services attended and no one is reported to have been injured in the incident,” it added.

Drone footage from the scene showed extensive damage to the building.

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A spokesperson for the Crown Prosecution Service said: “Our prosecutors have worked to establish that there is sufficient evidence to bring the case to trial and that it is in the public interest to pursue criminal proceedings.

“We have worked closely with Northumbria Police as they carried out their investigation.”

Oliver was remanded in custody and will appear at Newcastle Crown Court on Tuesday, 14 October.

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Kalshi ‘ready to defend’ prediction markets amid Massachusetts lawsuit

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Kalshi ‘ready to defend’ prediction markets amid Massachusetts lawsuit

Kalshi ‘ready to defend’ prediction markets amid Massachusetts lawsuit

In comments to Cointelegraph, Kalshi claimed that Massachusetts is “trying to block Kashi’s innovations by relying on outdated laws.”

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