20 Mar
Question
Thames Water: Financial Viability

The Question session focuses on the financial viability of Thames Water and the broader issues surrounding its operational efficiency, particularly in sewage management. The major concern raised by Clive Jones highlights the increase in raw sewage discharged by Thames Water and its increasing financial debt. The debate reflects a critical discussion on whether the Government is taking sufficient regulatory steps to ensure efficient performance improvement and environmental compliance across the water sector.

50% increase in raw sewage discharged by Thames Water from the previous year.

Highlighting the environmental impact of Thames Water's operational practices.

The Minister, Steve Reed, provides an update on governmental actions through legislation like the Water (Special Measures) Act 2025, emphasizing ongoing assessments to reform regulation, suggesting a proactive governmental stance in response to these concerns. The acknowledgement of Sir Jon Cunliffe spearheading a sector-wide review indicates a potential for comprehensive reforms.

Billions of pounds in extraordinary debt accumulated by Thames Water.

Indicating the financial strains faced by the company.

This session encapsulates the tension between environmental concerns and corporate financial management, raising questions about the effectiveness and speed of governmental measures to address such issues. The session suggests heightened monitoring and anticipates strategic interventions to prevent any financial or environmental crises relating to water management companies.

Outcome

The session concludes without an immediate resolution but promises ongoing scrutiny and reform of water sector regulations through legislative and investigative undertakings by government officials. Recommendations for reform, propelled by a review led by Sir Jon Cunliffe, signify future governmental actions focused on sector regulation and financial stability.

Key Contributions

Clive JonesMP
Liberal Democrats

Raised concerns regarding the financial viability and regulatory oversights concerning Thames Water.

Steve ReedGovernment Minister

Reiterated the Government's commitment to improving performance across water companies through recent legislation.

Original Transcript
Clive Jones
Wokingham
LD
Question
UIN: 903298

11. What discussions he has had with Thames Water on its financial viability.

The Secretary of State for Environment, Food and Rural Affairs
Steve Reed
10:05

I am of course having conversations. I can reassure the hon. Gentleman that the company remains stable, and that the Government are closely monitoring the situation.

Clive Jones
10:05

Data published this week in The Guardian revealed that 50% more raw sewage was discharged by Thames Water last year than in the previous 12 months. Thames Water is racking up billions of pounds of expensive extraordinary debt, while continuing to pump tonnes of sewage into our rivers.

Despite bold targets and kind words, there is simply no action on cleaning up our rivers. What will the Government do to improve Thames Water’s performance?

Steve Reed

The Government are taking steps to improve the performance of all water companies, including through the Water (Special Measures) Act 2025, which I spoke about earlier.

Sir Jon Cunliffe is leading a review of the entire sector, so that we can reform regulation and, if need be, the regulator, to ensure that they are fit for purpose.

All content derived from official parliamentary records