Rt Hon Sir Julian Smith KCB CBE MP has called on the Government to take a more proactive role in resolving the ongoing crisis at Thames Water by bringing together investors, regulators, and government to find a sustainable solution.
Speaking during an Urgent Question to the Secretary of State for Environment on Tuesday, 3 June, Julian highlighted a concerning lack of coordination among key stakeholders:
Julian said, “Over a year ago, I spoke to one of the then-biggest investors in Thames Water, and I was struck by the fact they said they had never been in a room with the regulator, other investors, or the government.”
He urged the Secretary of State to use his influence to facilitate behind-the-scenes engagement between all parties.
In response, Secretary of State Steve Reed acknowledged Julian’s concerns and pointed to systemic failures in the regulatory system.
Julian’s intervention came on the same day that Sir Jon Cunliffe, Chair of the Independent Water Commission, published his interim report. The report identifies systemic and interlocking failures across government strategy, regulatory oversight, and company governance. It warns that the water sector is in urgent need of a “fundamental reset” and calls for new legislation to rebuild public trust and ensure long-term resilience
The report also raises concerns about the financial fragility of major water companies like Thames Water. If the company were to collapse, the Government could be forced to step in—potentially leaving taxpayers liable for billions of pounds in emergency support or nationalisation costs.
You can watch Julian's full question here.
