Future of Thames Water

Olly Glover Excerpts

Tuesday 6th January 2026 Westminster Hall

[Olly Glover (Didcot and Wantage) (LD)]

It is a pleasure to serve under your chairship, Mrs Harris. I commend my hon. Friend and constituency neighbour the Member for Oxford West and Abingdon (Layla Moran) for introducing the debate so eloquently. As she said, there is no question but that climate change and population growth are placing increasing strain on our water resources, and that we need the right infrastructure to accommodate a growing population. That is why, despite some aspects being controversial, I support new housing and road projects in my constituency.

Concern about some of Thames Water’s plans is widespread and impossible to ignore, because of Thames Water’s performance and track record. It is impossible to ignore the fact that Thames Water currently loses more than 600 million litres of water—nearly a quarter of the water in its network—to leaks every day. The ongoing failure to deal with those losses is one of the principal reasons why my constituents do not have faith in Thames Water’s enthusiasm for what it is now calling the White Horse reservoir.

Thames Water’s record of financial mismanagement and poor operational delivery is well documented and has badly eroded public trust. Against that background, it is extraordinary, but really ought not to surprise us, that the estimated cost of the proposed reservoir near Abingdon has risen from £2.2 billion to as much as £7.5 billion. That is no marginal increase: it is a threefold rise. At the same time, the size of the proposed reservoir has increased by 50% compared with what was once consulted on.

Despite the scale of the financial risk, it is bill payers—my constituents—not investors who are expected to foot the bill. This is not a fair allocation of risk, particularly when the company’s past decisions have contributed to its current financial fragility. We therefore urgently need an independent review and proper consideration of alternatives, such as the Severn-to-Thames transfer scheme, before irreversible commitments are made. Bill payers in Oxfordshire, and indeed across the region, deserve a proper solution that is effective, proportionate and fair. That means an urgent independent review of the south-east strategic reservoir option proposal, full transparency over costs, and serious consideration of alternatives, including leakage control, before any irreversible commitments are made.

Is the Minister really comfortable with the proposal landing on her desk in its current form, with such significant unanswered questions about cost, transparency and value for money? Is it right that bill payers will bear all the risk? It is interesting that Thames Water has decided to start calling it the White Horse reservoir, because there is a real risk that it will end up being the white elephant reservoir—and nobody wants that.