The proposal to give regional leaders greater oversight of water companies raises a much wider question about how accountability should work in a more devolved state. Public trust in the sector has been weakened by concerns over performance, investment and environmental standards, but the issues raised by reform are not unique to water. They reflect a broader challenge facing public sector leaders: how to ensure structural reform translates into meaningful improvements for the people who rely on public services.
This goes to the heart of the devolution agenda. Reform should not simply redraw institutional boundaries or transfer responsibilities from one organisation to another. The real test is whether it improves services, strengthens accountability and creates tangible benefits for citizens. Across the public sector, leaders are under pressure to deliver better outcomes against a backdrop of financial constraints, rising demand and growing expectations. In that environment, new structures alone will not solve existing problems.
New powers must be matched by capability
Greater regional oversight is a step in the right direction, but transferring responsibility is only one part of the equation. New powers need to be matched by the capability, information and resources needed to use them effectively.
In practice, capability means giving regional institutions the skills, processes and resources needed to turn new responsibilities into effective delivery. It also means translating ambition into clear decisions, practical operating models and change that can be sustained over time.
If new regional bodies are introduced, there must be clarity from the outset about what they are there to achieve, how success will be measured and what citizens should expect to see improve. Without that, there is a risk of creating additional bureaucracy without delivering better outcomes for the public.
Accountability depends on information
Access to clear, consistent and joined-up information will be critical. Regional leaders cannot provide meaningful scrutiny if information on budgets, investment, environmental performance and service standards is fragmented across different systems. Accountability relies on decisionmakers having a reliable view of performance, risks and priorities. Without that visibility, effective oversight becomes far more difficult.
Across local government and the wider public sector, leaders are expected to make increasingly complex decisions while managing financial pressures and delivering reform. To do that effectively, they need confidence in the information available to them and the ability to turn insight into action. Technology has an important role to play, but it is not the answer on its own. Systems can support transformation, but governance, leadership and organisational capability determine whether change succeeds.
The goal should not be to collect more information. It should be to create a clearer picture of performance, support better decision-making and make accountability easier to demonstrate.
People deliver change
As with any reform programme, government must also consider the people responsible for making change work in practice. Structural reform often focuses on governance and operating models, but it is ultimately delivered by people.
Shifting responsibilities can create significant change for employees across public bodies, regulators and delivery organisations. They need clear roles, the right skills and technology, and support through the transition. Without that foundation, even well-designed reforms can struggle to achieve their intended outcomes.
This is particularly important at a time when many public sector organisations are dealing with change fatigue. Leaders are being asked to implement reform while maintaining essential services and managing competing priorities. Building capability, confidence and adoption is therefore not a supporting activity; it is central to successful delivery. Lasting transformation comes when employees understand the purpose of change and have the tools and support needed to make it stick.
The real test of devolution
As the Government has recognised through its wider devolution agenda, power needs to be matched by capability. Regional institutions therefore need to be equipped from the outset to turn new responsibilities into visible improvements for the public.
Water reform therefore provides a practical test of the wider devolution agenda. If greater responsibility is moving closer to communities, the success of that shift will ultimately depend on the difference it makes in practice. Reform should not be judged by whether a new structure has been created or responsibility has been transferred. It should be judged by what changes in practice.
Ultimately, citizens are unlikely to care which organisation holds responsibility on paper. They care whether services improve, whether cost increases are minimised, whether accountability is clearer and whether problems are addressed more effectively. Devolution has the potential to deliver those outcomes, but its success will be determined by whether those changes are felt positively by the people and communities they are intended to serve.
Jessica Browne is director of local government at Civiteq
