Future of Thames Water
Debate between Layla Moran and Carolyn Harris(2 days, 8 hours ago)
Westminster HallRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Layla Moran
My scepticism about Thames Water is basically the theme of my entire speech, and I completely agree. We absolutely need more houses in and around Oxford—on that I am clear. However, if that work is one of the things stopping those homes from being built, we must of course ensure that it is done to the highest possible standard. It sounds like something has happened there, and I would love to understand better why the EA withdrew that objection with no further change.
More than half of sewage treatment facilities are operating below their required capacity, while raw sewage discharge doubled between 2023-24 and 2024-25. That is a symptom of chronic underinvestment, and we need serious capital to fix the problem. Instead, Thames Water chose to funnel profits into dividends. As recently as March 2024, the company paid £158.3 million out to shareholders. This is a company that is hanging on to a lifeline of creditor goodwill, having already raced through £1.5 billion of the emergency cash that was injected 11 months ago. The scale of the mismanagement is staggering.
No one doubts the need to take steps to secure our water supply for the future in the context of the climate change, but I now come to the local example that I promised my hon. Friend the Member for Richmond Park (Sarah Olney). Thames Water presides over leaks to the tune of over 592 million litres a day, which is nearly a quarter of all the water it manages—it is unbelievable. My residents have justified questions about the validity of the arguments underpinning the south-east strategic reservoir option, also known as SESRO, which lies just outside Abingdon. It is estimated to cost £7.5 billion and counting, and we should remember that it started at £2.2 billion, and barely nothing has changed since then. If such a major project must go ahead—the Government say it should, fine—then can the Minister tell me something that I just do not get? Do they really trust Thames Water to get this done right? It is like running a bath when a hole has been punched through the plughole. I would not trust Thames Water to run a bath, let alone deliver a project of this size.
Will the Government also make clear what residents can expect from this project, should it go ahead? Will there be genuine community benefit? As it stands, the company is promising lots of lovely things—sailing clubs and all sorts—but when questioned on the matter at a recent drop-in event, the promises seemed to be nothing more than an artist’s impression. Will the Minister therefore intervene to ensure that the local villages and towns that will have to suffer the disruption get something out of it, beyond higher bills?
Time and again, constituents are being let down by chronic under-investment. For decades, every Government of every colour have presided over some form of this mess. But I do not want to blame; I just want solutions. As a result, I have some questions. What are the Government doing to prepare for when Thames Water exhausts the £1.5 billion of emergency funding? Have they considered the Liberal Democrats’ plans to turn it into a public benefit company? That is not public ownership, which others call for. The taxpayer would not take on the debt, but the profits would be invested back into infrastructure and fixing the problem, not used to enrich the likes of Abu Dhabi Investment Authority and the China Investment Corporation.
Will the Government promise a full response to the Independent Water Commission report and the creation of the new regulator with teeth? When can we expect the White Paper? Will we all, together, make a new year’s resolution—that this is the year we sort out Thames Water’s mess, for the sake of people and our planet, once and for all?
Carolyn Harris (in the Chair)
I remind Members to bob if they wish to speak, so that we can ascertain whether we need a time limit. I will call the Front Benchers at 5.08 pm, with the Minister rising at 5.18 pm.