The government wrote the Water Framework Directive pretty much word for word in to British law, they actually tightened the chemical elements which made nearly every single river fail instantly. Only issue is, the EU used to fine Britain heavily for not meeting targets...I cant see the government fining themselves can you?
The water company regulators have put in to the next pricing review targets (i'm not sure thats exactly what it's called. its the AMP26 I believe) about pollution and effluent and clearing it up. I have sat in on numerous Anglian Water workshops and meetings about local SWT plants on the Nene and how they are looking to combat not only the incidents of overspill and pollution but the general outflows. Funnily enough, as one industry insider put it to me, the water that comes out a treatment works is more heavily regulated than what comes out your tap!