Thames Water: Government Support

Luke Taylor Excerpts
Thursday 3rd April 2025

(2 days, 10 hours ago)

Westminster Hall
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Emma Lewell Portrait Emma Lewell (in the Chair)
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I thank all hon. Members who were eagle-eyed enough to spot that my name has changed. The nameplate in front of me is correct and accurate.

Luke Taylor Portrait Luke Taylor (Sutton and Cheam) (LD)
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I beg to move,

That this House has considered Government support for Thames Water.

It is again a pleasure to serve under your chairship, Ms Lewell. I thank the Backbench Business Committee for granting me this important and extremely topical debate. I also thank hon. Members from across the House for joining me this afternoon. I hope that we are all of the same opinion on the problem, although we might well differ slightly on the solution.

Sixteen million Britons are gaslit daily by Thames Water. The company has unleashed filth in our waterways and homes, while cutting deeper and deeper into our personal finances. When I think about the performance of Thames Water, I imagine the very excrement it fails to manage. Despite all the years of historic under-investment in favour of profit, the business has been run into the ground. It now finds itself on the brink of collapse, counting down its days of cash remaining, as we all saw in the recent documentary. It makes an absolute mockery of the water utility industry that fat-cat shareholders are enjoying obscene payouts and company executives rake in sky-high salaries and bonuses, all while our rivers and our wallets suffer. River ecosystems are dying, and our children are denied the joy of swimming in nature because of the threat of swallowing human waste.

Tanmanjeet Singh Dhesi Portrait Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
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I congratulate the hon. Member on securing this important debate. It is beyond clear that my Slough constituents are not happy with Thames Water—in fact, recent figures demonstrate that this company is one of the worst scoring for customer satisfaction for the fourth year in a row. We all know that the last Conservative Government had a rotten record on water companies: they were laden with debt and there were ridiculous executive bonuses and sky-high bills. That is not a sustainable future. Does the hon. Member agree that the Government must ensure that customers and our environment are at the heart of future reform and regulation in the sector?

Luke Taylor Portrait Luke Taylor
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I completely agree that customers and residents, our constituents, must be put at the heart of any solution. We must find a way to ensure that people do not have to endure this anymore. As the hon. Member correctly says, there customer satisfaction ratings have been absolutely awful, which alone gives us a credible excuse to raise their concerns in this place.

To go beautifully back on to the script, just this Tuesday Thames Water customers were slammed with a 31% hike in their bills, in the middle of a cost of living crisis, to pay for this utterly appalling service. I say “customers”, but those of us unlucky enough to call Thames Water our provider are more like prisoners. I say that because choice in this market is an illusion. In this country, taxpayers cannot choose their water utility company. They are trapped. This afternoon I shall argue that the only way this Government can support Thames Water is by saving it from itself.

Calum Miller Portrait Calum Miller (Bicester and Woodstock) (LD)
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I am very grateful to my hon. Friend for securing this debate. My constituents in Bicester and Woodstock are fed up of Thames Water providing a poor service yet continually hiking the charges for it. I am thinking of constituents like Martin, who lives in Bladon, whose toilet floods regularly because of a collapsed sewer and who now has a tanker parked outside his house 24/7 because Thames Water has so delayed making the repairs. Does my hon. Friend agree that we need a reset at Thames Water after years of financial and operational failure? Does he further agree that the Government are quite wrong to be resisting special administration, which would be the best way to ensure that the financial mismanagement of the past sits rightly with the vulture funds and bondholders and not with future bill payers?

Luke Taylor Portrait Luke Taylor
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My hon. Friend is absolutely right to say that the burden must lie on the vulture funds, and his comments are as wise as the residents of his Bicester and Woodstock constituency.

We Liberal Democrats have long called for action to reform this lousy company. It has been clear to us for a very long time that the current position is untenable. Recognising that it is fundamentally broken, we have no fear in stating exactly what we need: to rip it up and restructure it, so that it can finally work for our constituents.

To make my argument, I will begin by touching on the sheer mess that the company is in. Naturally, many of the points I make will come as no shock to the hon. Members across this House whose residents are flooding their inboxes as Thames Water floods our rivers with sewage. I will then outline why the Government must, with the utmost urgency, put this failing water company into special administration. Finally, I will argue that the only way that this Government can support Thames Water is by scrapping Ofwat and finally getting a regulator that uses its teeth.

Thames Water is knee-deep in a nightmare of its own making. In 2024, it set a new record by pumping 50% more untreated sewage into our waterways. In 2023, the company was named the worst performer in England and completely failed to meet its own performance metrics. In 2022, it made an extra £500 million in profit despite pipe bursts during a heatwave that caused a regional drought and a hosepipe ban. Untreated sewage now pumps through waterways in southern England like it is part of the furniture.

I fear that, were it not for the new Thames Tideway tunnel, which I was fortunate enough to visit recently, our river would be destined for the unmanageable decline that turns waterways into open sewers, like something straight out of a Dickens novel. Humans can choose not to go in the water, but flora and fauna have no such luxury. We are advised not to let our dogs swim in the river, because they may die from the pollution. Rare chalk stream habitats are being decimated by floods of untreated waste. These precious ecosystems are dying. They have no choice but to endure the toxic chemicals from Thames Water’s outflow pipes.

Thames Water’s sewage problems stem from a systemic failure to update its outdated, mostly Victorian infrastructure. High-risk infrastructure is given ad hoc fixes, with zero communication to customers. The company’s approach to fixing water facilities in Southwark, in London, is a prime example of this reckless approach. Last year, the chief executive had the audacity to blame excess storm overflows on climate change. Yes, climate change is real, and it is causing more intense rainfall and more regular storms, but let me ask Thames Water this question: how long have we known about this, and why did Thames Water not invest annually in its crumbling infrastructure to handle this well-known challenge?

Instead of prioritising the environment and local communities, Thames Water chose to line the pockets of its executives, its shareholders and the vulture funds that owned it. In 2023, the company paid £196 million in dividends, and over the past four years £62 million has been paid out to company executives in bonuses. This has been done at a time when the company is drowning in debt, which currently stands at a whopping £19 billion. Startlingly, more than 25% of customer water bill payments are spent on paying interest on the company’s debt. That is our money paying for the company’s mistakes.

Now, we are told not to worry; everything is in hand because US private equity group KKR—Kohlberg Kravis Roberts & Co.—has been selected as the preferred bidder to take control of Thames Water. This is not a British company, and it has no stake in British communities. We have no reason to believe that a private equity group based in the United States will act as though it has any obligation other than to itself. Northumbrian Water, in which KKR has a significant stake, was responsible for more than 40,000 sewage spills in 2024. What will change if it takes over Thames Water? Enough is enough. The Government must step up.

Tanmanjeet Singh Dhesi Portrait Mr Dhesi
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The hon. Member is making a hard-hitting speech. The scale of the water bill increases has left many of my more vulnerable Slough constituents very anxious about how they will pay their bills. As he rightly points out, in recent years, while customers struggle, water companies including Thames Water have pumped record amounts of sewage into our rivers, paid their bosses millions in bonuses and failed to invest adequately in vital infrastructure. Does the hon. Member agree that the Government must take firm steps to stop this exploitation of the environment and of our people, and that water companies must now step up to the plate to protect their most vulnerable customers?

Luke Taylor Portrait Luke Taylor
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I absolutely agree, but I fear Thames Water’s lack of ability to do that, simply due to the debt pile and the situation in which the company finds itself. The hon. Member’s words on behalf of his vulnerable residents clearly come from a deep wish to serve them.

The Government must step up. They must not support Thames Water—the motion is somewhat misleading—but they must support customers throughout the south by finally doing what has long been necessary. Indeed, the first draft of the debate title I submitted to the Backbench Business Committee was, “10 things I hate about Thames Water”—my researcher will appreciate me getting that in—but alas, we were not able to bring it forward.

The Government must place Thames Water under special administration. I do not lay all the blame at the feet of the current Government. We all know that for far too long the Conservative Government stood idly by while Thames Water poisoned our waterways. But with each passing day this Government must surely recognise the growing urgency of action; if they do not, it will become their fault.

Under special administration the state can temporarily take control of this collapsing company. The day-to-day operations would carry on as normal, but the board that has bled the business dry would be gone—restructured and replaced. The greedy executives who have pocketed millions in bonuses while running the company into the ground would be stripped of their bonuses. There can be no more fat pay cheques while they fail customers. Taxpayers would no longer be forced to watch helplessly as their bills rise like the water level, slowly drowning them just to cover the company’s massive and foolish debt.

With new leadership there is a chance for a new direction. Under special administration the company could finally implement a meaningful plan to tackle the sewage crisis that has plagued our waterways for far too long. No longer would our streams, rivers and lakes be seen as expendable. The £3 billion debt lifeline that Thames Water has just secured will not last forever. All it serves to do is to preserve a broken status quo. The company has proven time and again that it is not fit for purpose. If this Government do not act now, how much more of our constituents’ money will be flushed down the drain? I am begging the Government—literally begging —to listen to our anger, save us from Thames Water’s incompetence, and take steps to ensure that the next iteration of Thames Water, and other water companies across the UK, cannot get away with this kind of behaviour.

It all starts with setting up a proper water company regulator that actually does its job. Ofwat is an utter disgrace. It is asleep at the wheel and complicit in the chaos caused by the company. The regulator has sleepwalked through the mess that is Thames Water, now greenlighting a 35% hike in bills over the next five years. It has turned a blind eye to the outrageous profits and bonuses pocketed by Thames Water shareholders. It has sat leisurely by as the water companies refused to properly update their crumbling infrastructure. It has repeatedly refused to set meaningful environmental targets for water companies to improve the quality of our water. The regulator is, through its inaction, helping Thames Water to fleece the taxpayer and carry out its dirty work.

It is time to scrap Ofwat and replace it with a new regulator, one with real teeth that, in the great tradition of anti-trust and community-first capitalism, is not afraid of a fight and will square up firmly to those who benefit most from a broken system. We need a regulator that is not afraid to be bold and ambitious in fighting for the best for the British people. We expect nothing less from the Government, so why should we shrink from demanding it from the regulatory arms of the state? Indeed, if the Government hold themselves to that standard, why should they hold their agencies to anything less?

The fact is that our constituents are being utterly let down. We cannot go on like this. Across the board, the water industry needs wholesale reform, but right at the heart of the scandal, wallowing in a stinking mess of its own making, is Thames Water—a company that was set up to serve the public but has instead become a paragon of failure, debt and daylight robbery. The Government do not have long. They must act swiftly to rescue the idea at the heart of the company—the idea, which I hope has not been fully eroded or caked in sludge, that a utility company, working in collaboration with Government, can be a force for good governance.

John Lamont Portrait John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
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I am sure the hon. Member is wondering why a Scottish MP is speaking in a debate about Thames Water. I absolutely agree with his concerns about Thames Water, but the model he seems to be proposing is very close to what we have with Scottish Water, which I am sure he has done a lot of research on. He will know that sewage was dumped into Scotland’s rivers and lochs for over 600 hours a day in 2023, and we do not monitor our water discharges anywhere near as closely as England. I therefore urge caution. The model he is proposing does not work in Scotland. The Scottish Environment Protection Agency, despite having the powers, does not use them in the way he might want.

Luke Taylor Portrait Luke Taylor
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I genuinely thank the hon. Member for his intervention. It highlights that there is no silver bullet. The solutions that we propose are complex and difficult; they require monitoring and oversight of infrastructure plans, and properly phased, long-term planning and investment to prevent the discharges that we see under the current system. Only through the proper process—upgrading holding tanks, for example, or upgrading the technologies used to filter and clean the water before the effluence is put back into the river—can we see improvement. His challenge is fair and welcome; the solution not a silver bullet.

To conclude, a utility company, working in collaboration with Government, can be a force for good governance and good management of our environment, and give good value to bill payers. Imagine looking at a water bill and thinking, “This is good value!” I promise that there is a future like that, but that is what is at stake. The Government must act now to sort out the mess and establish that in this country, utility companies can thrive only when they take seriously their responsibilities to the environment and to us, rather than solely the pursuit of profit.

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Charlie Maynard Portrait Charlie Maynard (Witney) (LD)
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It is a pleasure to serve under your chairmanship, Ms Lewell. I thank my hon. Friend the Member for Sutton and Cheam (Luke Taylor) for securing this debate on Government support for Thames Water. What does Government support for Thames Water look like? Our current Government support Thames Water by letting it breach the terms of its operating licence, letting Ofwat ignore its own rules, letting consumers take the pain of higher bills for no gain, letting financiers make out like bandits and letting our rivers continue to be filled with sewage. What is shocking about that is that a Labour Government are doing it. This Government are turning out to be every bit as bad as the Conservatives were at protecting our rivers. They are completely ducking their responsibilities. It is within the Minister’s powers to take action: she is the Parliamentary Under-Secretary of State for Water and Flooding at DEFRA, DEFRA oversees Ofwat, and Ofwat issues operating licences to water companies.

Here are some of the key requirements that Thames Water needs to comply with, per its Ofwat-issued operating licence. First, there is an operational requirement to comply with environmental and health standards. Thames Water is failing that requirement. As per Environment Agency data, and as my hon. Friend the Member for Twickenham (Munira Wilson) said, in 2024 Thames Water discharged nearly 300,000 hours of sewage, which is 50% up on 2023. It is illegal to dump sewage in dry conditions, but it is happening repeatedly. Professor Peter Hammond, who lives in my constituency, monitored the Stanton Harcourt sewage treatment works in my constituency, and found that there had been 266 illegal spills in just a single sewage treatment works in a four- year period. That is a complete failure of that operating requirement.

Secondly, Thames Water is failing the financial viability requirement, under which it is required to have two licences of investment-grade credit ratings. Currently, it has no credit ratings that are investment grade. Standard & Poor’s has the company’s debt 12 notches below investment grade, and Moody’s has it nine notches below. That is as far deep into junk bond territory as one can get. In the last financial year to March 2024, Thames Water had £19 billion of debt but only £1.2 billion of cash in. Everybody knows that that is not a sensible way to run a company.

By allowing Thames Water to breach that rule, we introduce moral hazard into the water sector and all other regulated sectors. Other water companies take note that there has been no material sanction of Thames Water and realise that they can also likely get away with it. Of the nearly £1.4 billion of funding due to come into the company, £900 million is going straight out in interest expenses, sweet financial goodies for hedge funds, and advisory fees. That is not fair on our bill payers. Customers are being royally stuffed, and Ofwat and the Minister’s DEFRA team are standing by.

Thirdly, there is a requirement to demonstrate fairness, transparency and affordability to customers—the fair pricing requirement—and Thames Water is failing at that too. Bills have gone up by a headline of 31%. Many Witney constituents have written to me with increases of 50% and 70%—in one case, it was even 93%. On top of that, to add insult to injury, Thames Water has an application to the Competition and Markets Authority to increase bills even higher, by 59%.

Fourthly, there is the ownership requirement. This one really gets my goat. Thames Water must inform Ofwat of any change to control. Ultimate controllers are defined in Ofwat’s papers as being

“in a position to control or in a position to materially influence the company”.

Thames Water’s own advisers have publicly stated that the company is de facto controlled by its creditors. Ofwat is ignoring this. Extraordinarily, Ofwat, wrote to me in the last month to say that, despite it being publicly stated in the press that Omers, a shareholder in Thames Water, had written its stake down to zero and pulled its board representation off last May, it is still actually controlling the company. Why is this going on? What could be going on here? It smells—

Luke Taylor Portrait Luke Taylor
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It smells like—

Charlie Maynard Portrait Charlie Maynard
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Yes, it does. I think Ofwat is doing exactly what the company’s creditors want it to do, and I wonder why that is happening, because it should not be.

Finally, there is a failure to innovate. There are a host of technologies out there, and far too often we hear the same old lines about Victorian sewers, cameras and how impossible it all is. There is a huge range of leak detection, pipeline monitoring, protective maintenance, trenchless pipe repair and pressure management technologies. I hear from Oxfordshire firms that it is easier to sell sewer technology solutions into the US and Europe than into the UK, so something is going seriously wrong. We could start by looking at whether the incentives are effectively aligned; I do not believe they are.

What are the consequences of this failure to act? It is easy to lay a lot of the blame at the last Government, but the Water (Special Measures) Act 2025 was more window dressing than action. I am new to Parliament, but I was particularly dismayed that not a single word of a single proposed amendment from any party was accepted by the Minister. I wish that in Parliament we all had enough confidence to accept good ideas where we found them—I live in hope.

--- Later in debate ---
Emma Hardy Portrait Emma Hardy
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I am pleased by what I believe I have heard: that no reference was made to Ruth Kelly with regard to Thames Water; instead, the comment was solely about her representing Water UK.

Further to my point about people who are not here and unable to defend themselves, as a trade unionist I want to talk about the people who work for water companies, including those who work for Thames Water and go out to fix the broken pipes, clean up sewage and deal with the sewage overspills. I have had reports from some unions that those people often face abuse for doing so. They are often on the frontline facing people angry with the company. I would like to say—and I hope we have unity on this point—that the people going out, cleaning up the mess and dealing with the difficulties are not responsible. They are not Thames Water; they are people who work for it. I thank them for the work that they do in incredibly difficult circumstances.

Luke Taylor Portrait Luke Taylor
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I think we would all agree on that. It was interesting to see, in the BBC documentary, that the people who work at Thames Water clearly wanted to do a good job. They wanted to improve things for residents—their neighbours, family and friends—but just did not have the chance to do so because of the structure of the company and the difficulties that it is in. This debate is about the need to help not only the customers—our residents—but the workers who want to be doing so much better and find it so dispiriting to be part of that failing organisation.

Emma Hardy Portrait Emma Hardy
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I completely agree. They are trying to do a good job. I add that it is a good industry to work in; the people in it have long careers and, I might add, excellent trade union representation. I am not sure that I will have complete support from everyone in the room on that point—just when I was doing so well—but I want to echo that it is not those people’s responsibility.

My hon. Friend the Member for Slough (Mr Dhesi), who is no longer in his place, was right to say that customers and the environment should be at the heart of reforms. As I mentioned, we changed the articles of association to put customers on to the boards. My hon. Friend is always incredibly caring about his residents, so I wanted to mention to him and to all the other hon. Members that we are holding the water companies to account to end water poverty by 2030. We are just about to consult—we have to wait for purdah—on changing the rules around WaterSure to extend eligibility for it.

I am pleased that my hon. Friend the Member for Clapham and Brixton Hill (Bell Ribeiro-Addy) enjoyed her three years in Yorkshire. It is a fine and wonderful part of the country, and she is always welcome to come back. She is an incredible champion for her community. I am sure that she will never need my assistance in standing up for that community, but I am always happy to give it if she does.

My hon. Friend the Member for Swindon North (Will Stone) highlighted the role that MPs can play. He showed what a good choice was made in the last election to send him here as a representative for his community. I thank him for his support for the Water (Special Measures) Act and for the further work that we are doing on regulators.

The hon. Members for Twickenham (Munira Wilson) and for Richmond Park (Sarah Olney) talked about the Teddington abstraction scheme. Without going into loads of detail, there will be a consultation, and they will be able to feed in the concerns of their residents and environmental concerns. But if either of the hon. Members feel that their concerns, or those of their residents, are not being listened to, I am happy to make arrangements for us to sit and have a longer conversation about that.

My hon. Friend the Member for Bexleyheath and Crayford (Daniel Francis) mentioned a family of four struggling with their water bill. I again highlight WaterSure. We are looking to expand eligibility for it, but at the moment, if a family has three or more children under the age of 18 living at the property and they claim child benefit, they will be eligible for WaterSure, so I urge my hon. Friend to pass that information on to his constituents. I thank him for his support for the Water (Special Measures) Act, the commission and our desire to introduce change.

Before turning to Thames Water, I want to emphasise that as a Government we recognise that the water sector is facing many challenges, and we have set out ambitious plans to tackle those challenges head-on, but it is important also to emphasise that resolving them will require long-term and transformative change. One thing mentioned here—I think by the loyal Opposition—is that there is no silver bullet or quick fix for some of the problems that we face.

We recently took the Water (Special Measures) Act through Parliament; it was amended in the other place. It will drive meaningful improvements in the performance and culture of the water industry and act as a first step in enabling wider and transformative change across the water sector. The Act delivers on the Government’s manifesto commitments by blocking bonuses for executives who pollute our waterways, enabling the bringing of criminal charges against persistent lawbreakers, enabling automatic and severe fines for wrongdoing, and ensuring monitoring of every sewage outlet.

In October we launched, in collaboration with the Welsh Government, an independent commission on the water sector regulatory system. This is the largest review of the water industry since privatisation. The commission will report in the middle of this year and make recommendations on how to tackle systemic issues in the water sector to help restore our rivers, lakes and seas to good health, meet the challenges of the future and contribute to economic growth. Those recommendations will form the basis of further legislation to attract long-term investment and clean up our waters for good.

I now turn to Thames Water specifically before moving on to the sector as a whole. I will say as much as I am able to about Thames Water, bearing in mind that it is going through a confidential process. I completely understand what has been said. Let me say at the beginning that I am not here as the hon. Member for Thames Water, and I am not here to defend the actions of Thames Water. I want to reassure and, I hope, send a message to the general public that we are monitoring the situation and the company remains stable. In the event of special administration, the taps will still function and the sewage will still be taken—I want that message to be heard by the general public—so there is no need for alarm. The people working for the company will continue to be paid in the event of special administration. As a responsible Government, we are preparing for every eventuality. However, at the moment the company remains stable.

I think it is incorrect to say that we are “resisting” special administration. That would be a total mischaracterisation of what special administration is and the process of entering the special administration regime. It is not that we are resisting anything. A special administration order is a well-established mechanism to ensure that the company continues to operate and that customers continue to receive their water and wastewater services, so customers need not be concerned about any disruption to their water supply or wastewater services because of the financial position of their water company. The provision of water and wastewater services will continue.

Special administration is the ultimate enforcement tool in the regulatory toolkit, and as such, the bar is set high. The law is clear—this obviously links to insolvency legislation—and states that special administration can be initiated only if the company becomes insolvent, can no longer fulfil its statutory duties or seriously breaches an enforcement order. Only in that scenario does the Secretary of State for Environment, Food and Rural Affairs or Ofwat—crucially, with the consent of the Secretary of State—have the power to request the court to place a company in a special administration regime. If that situation arises, the court must be satisfied that there is sufficient evidence to demonstrate that the water company in question is insolvent, can no longer seriously fulfil its primary statutory duties, or has seriously breached an enforcement order. It will then make a special administration order, appointing a special administrator.

That is a hypothetical situation. It is not, I stress, the situation that we are talking about now, but let us say that somebody said, “We want to put this company into special administration”; the decision then would be made by the court, and the court would need to be satisfied that there is the evidence to put that company into special administration.

--- Later in debate ---
Luke Taylor Portrait Luke Taylor
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At a Sutton council meeting before the 2024 election, I made it clear that if two Liberal Democrat MPs were elected in Sutton, we would hold Thames Water to account for its mockery of our residents. I am proud to stand here today to start delivering on that promise.

I thank all hon. Members around the Chamber for their contributions. The hon. Member for Slough (Mr Dhesi) is not in his place, but his interventions about the worries of his constituents show how hard he is working for them. I thank the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont); he invites me to make a suggestion about the Administration in Scotland, and how nationalising and giving a toy to the SNP might not be the best idea in any circumstances—a change of Administration might be beneficial for all of us. I thank the hon. Member for Clapham and Brixton Hill (Bell Ribeiro-Addy) for her reports on the regular leaks and disruptions, and share her anger at the shareholders and financial chicanery used to extract money from our most important utility—although I will try to scrub my mind of the image of the cherry on the sewage cake.

I thank my hon. Friend the Member for Richmond Park (Sarah Olney) and agree that special administration is needed, as Thames Water is understaffed and utterly demoralised. I also thank the hon. Member for Swindon North (Will Stone) and agree that the company is failing on every level. That highlights the area that Thames Water covers, all the way from my constituency in south-west London to Swindon North. The destruction of natural habitats under Thames Water is heartbreaking, and the story of his intervention for his constituents shows how comprehensive the failures are.

I thank my hon. Friend the Member for Twickenham (Munira Wilson), who mentioned how public trust has been undermined as residents see an increase in bills. I note her comments about the Teddington direct river abstraction site, and am also glad to learn that the Ham Lands are safely under Liberal Democrat control once again. I also note her frustration and worry about the failed infrastructure projects under Thames Water, and I worry about any investment in infrastructure plans that are not doing what they are supposed to.

I thank the hon. Member for Bexleyheath and Crayford (Daniel Francis) and share his frustration at his town centre being blocked and closed for months due to the water leaks; I can only imagine the incredible disruption to his residents and his frustration on their behalf. I thank my hon. Friend the Member for Witney (Charlie Maynard) and agree that further support would be breaching Ofwat guidance and rules, and that Thames Water is failing on all accounts. I thank him for his hard work on holding Thames Water to account and revealing its astonishing financial situation—it is truly terrifying. I am heartbroken that I am only the second person to get into Hansard a “shambopoly”, which I hope will become a new byword for the situation that Thames Water enjoys.

I thank my old friend, the hon. Member for Keighley and Ilkley (Robbie Moore), for his contribution, and acknowledge the efforts of the last Government to monitor sewage outflows. Understanding and quantifying the problem is the first step to resolving it. Once again, I note the discrepancy with the Administration north of the border. I also thank the hon. Member for his welcome words on the Teddington direct river abstraction project.

I welcome the Minister, and thank her for coming to this place and taking part in the discussion. I admire her ability to find 10 things that the Labour Government have achieved with the water industry, but a common refrain on this side of the House will be “We need to do more, and we need to do it faster.” It is good to hear about the consultation on the Teddington project, which will reassure many of my colleagues. I also welcome her reassurance for residents that, whatever happens, their water will continue to flow, as will their sewage.

However, none of the measures implemented fundamentally changes the status quo with Thames Water or puts a permanent fix in place. I recognise that the Government and the Minister are limited in what they can do, but special administration is surely the last throw of the dice to save Thames Water. I repeat the query from around the Chamber: if not now, when?

Question put and agreed to.

Resolved,

That this House has considered Government support for Thames Water.