Future of Thames Water

Debate between Calum Miller and Emma Hardy

Tuesday 14th July 2026 Commons Chamber

[Emma Hardy]

Quite clearly, some of the behaviour that we have seen in the past from water companies shows that the regulatory system did not work, and that is exactly why we are changing it. Of course, between Blair and the current Government there were 14 years of Tory Government and five years of coalition Government during which those Governments could have taken the actions that we are taking today.

On 16 June, the Secretary of State gave her preliminary views on the consortium’s proposal to Ofwat, with reference to section 2 duties of the Water Industry Act 1991. She was clear that she does not believe that the current proposal goes far enough to protect customers and the environment. She cited three particular concerns in line with her duties: unfair costs to customers, delays to infrastructure investment and delays to environmental improvements.

However, the decision on how to assess the proposal and whether to proceed with consultation ultimately rests with Ofwat as the independent regulator. It is therefore important that the Government respect those boundaries. While the Secretary of State may express views in accordance with her statutory duties, it would not be appropriate for the Government to direct Ofwat’s decision making, prejudge the outcome of its assessment or be seen to exert undue influence on an independent regulatory process.

We are working closely with Ofwat, which will engage with the consortium on any revised proposal. It is important to be clear that it is ultimately a matter for Ofwat to decide whether to consult on the consortium’s proposal. However, I reassure the House that while the company is stable, we stand ready for all eventualities and the Secretary of State takes her duties very seriously.

I will also use this debate as an opportunity to address some of the misconceptions that have developed about special administration. Too often, SAR is presented as a simple lever that the Government can pull whenever there are concerns about a water company’s performance, but that is simply not the case. The reality is that there is a high bar for the imposition of a special administration regime. A company can enter into a SAR only if it becomes insolvent, or if there has been such a serious breach of its principal statutory duties or an enforcement order that it is no longer appropriate for the company to retain its licence.

Where performance is concerned, any application for a special administration regime would have to be supported by a robust and compelling body of evidence and would ultimately need to satisfy the courts. Bringing a case forward without sufficient evidence would not only risk the failure of that case, but waste a huge amount of taxpayers’ money. For any case brought forward, the Government and Ofwat would need to be convinced that there was a robust and compelling body of evidence. That is quite different from what is presented out there too often—that this is just a button the Government can press at will.

[Calum Miller]

I am glad the Minister has moved on to the substance of DEFRA’s case. Will she clarify for my residents whether she considers a company that is spending 33% of the income it gets from customers on servicing its debt and paying a 10% premium on that debt is actually viable as a company? Will she set out for the House what she considers to be the measure of insolvency for a privately held monopoly?

[Emma Hardy]

As I have just said, on the issue of performance, cases have to be brought forward to court, and the court must be convinced that the company is not performing—I will move on to insolvency.

This issue is why regulators start by using the full range of supervisory and enforcement powers available to them where appropriate. Companies must be held to account, put forward credible plans to improve and deliver for customers on the environment. Indeed, that is one of the reasons why we are introducing a new performance improvement regime through the clean water Bill.

The performance improvement regime will help to prevent poorly performing companies from falling into a cycle of decline, allowing regulators to step in before a company approaches the point of failure. It will strengthen accountability, support improvements in performance and provide a clearer pathway for intervention long before special administration may be required.

Let me address another misconception about special administration. Some suggest that placing a company into special administration would simply allow the Government to take over and run the company directly. That is not how the regime works. A special administrator is appointed by a court and has specific legal duties and objectives. It must manage the company’s affairs, businesses and property for the statutory purposes set out in the Water Industry Act.

The special administrator’s primary responsibility is to ensure the continued delivery of essential water and waste water services while securing a long-term solution for the business. Depending on the circumstances, that could mean rescuing the company, such as through a restructuring, or transferring it as a going concern to new owners. That is why the special administration regime exists to protect customers and maintain vital public services while providing a framework for recovery or transfer. Customers continue to receive their services throughout the process, and the special administrator operates under the supervision of the court and within a clear legal framework.

I know the hon. Member for Witney is particularly concerned about whether the consortium meets the criteria of acting as the ultimate controller of Thames Water. Let me use this opportunity to address his concerns. The classification of ultimate controller is a matter for Ofwat, as the independent economic regulator, by reference to the terms of the company’s licence. Ofwat has given a detailed explanation of why it does not consider the creditors to be the ultimate controllers of the company in its letter to the Chair of the Business and Trade Committee, my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), dated 8 September 2025.

Ofwat has stated that one of the reasons why it does not believe creditors are in a position to materially influence the company’s policies or affairs is that it does not have the right to appoint directors to the board, and it does not hold any governance or veto rights over the Thames Water business plan or other strategic decisions that the company’s board is making. I am reassured that it has reviewed the matter and that the ultimate controller of the company has not changed—

Flood Insurance: Reform of Flood Re

Debate between Calum Miller and Emma Hardy

Wednesday 1st July 2026 Commons Chamber

[Emma Hardy]

I know how difficult the loss of those homes has been for the hon. Lady and her constituents. Losing one’s home because of coastal erosion must be devastating. There are no current plans to consider Coastal Re, but, of course, Flood Re keeps eligibility criteria under review.

[Calum Miller (Bicester and Woodstock) (LD)]

In September 2024, my constituency experienced a month’s worth of rainfall in 36 hours, which led to the inundation of many homes. A constituent in Woodstock has described how her house and her annexe—into which she had poured her pension to convert it to a holiday let—were inundated. She is now unable to obtain any kind of insurance, including Flood Re insurance. She wrote this to me:

“ I am terrified to think about any rainfall that could damage my home and business again.”

Will the Minister look at that case, and at Flood Re eligibility for those at risk of surface flooding—as distinct from river flooding—and those whose business premises abut their homes?

[Emma Hardy]

The hon. Gentleman is right to raise the concern about surface water flooding, which, owing to climate change and flash flooding, is becoming a greater risk than it ever was in previous years. As I have said, there are no current plans to look at businesses, but it should be possible for domestic properties to be covered by Flood Re. However, if the hon. Gentleman wants to write to me about this, he can of course do so.

Illegal Waste: Organised Crime

Debate between Calum Miller and Emma Hardy

Monday 17th November 2025 Commons Chamber

[Calum Miller (Bicester and Woodstock) (LD]

(Urgent Question): To ask the Secretary of State for Environment, Food and Rural Affairs what assessment he has made of the adequacy of the powers, funding and staffing of the Environment Agency to tackle the work and impact of organised criminal gangs illegally dumping huge quantities of waste in the countryside.

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Emma Hardy)]

Let me first convey apologies from the Minister for Nature, my hon. Friend the Member for Coventry East (Mary Creagh). She would have loved to be here for the urgent question, but she is currently attending COP30 in Brazil. In her absence, I will be doing my absolute best to answer all the questions from Members about this important issue.

The British countryside is one of our nation’s greatest treasures. From rolling hills to tranquil woodlands, it is both beautiful and essential to our wellbeing and our health. That is why it is so deplorable when waste criminals scar the landscape with complete disregard, damaging precious ecosystems and undermining our communities. This Government are committed to tackling waste crime, which is a blight on local communities and the environment and damages legitimate businesses. The Environment Agency has a wide range of powers, which it uses in its enforcement work against organised crime in waste and other environmental areas. It has strong powers of entry and evidence gathering, is able to authorise mobile communications data, and has authority to use covert human intelligence sources. It is one of only three non-police agencies to have access to police databases.

The Joint Unit for Waste Crime, hosted by the Environment Agency, brings together the Environment Agency, His Majesty’s Revenue and Customs, the National Crime Agency, the police, waste regulators from across the UK and other operational partners to share intelligence and tasking in order to disrupt and prevent serious organised waste crime. The Environment Agency’s economic crime unit targets the financial motivation behind offending, and uses financial mechanisms to inhibit the ability of offenders, including organised crime groups, to operate.

This Government have also increased the Environment Agency’s funding, including the amount available to tackle illegal waste operators, after years of frozen budgets and real-terms cuts. We have raised the budget for waste crime enforcement by 50% this year to £15.6 million, but we plan to go further still to tighten the net on waste criminals with policy and regulatory reforms to close loopholes exploited by them. We are fundamentally reforming the waste carriers, brokers and dealers system, tightening waste permit exemptions and introducing digital waste-tracking, and we are determined to clean up Britain and end the throwaway society.

[Calum Miller]

I am grateful to you, Madam Deputy Speaker, and to Mr. Speaker for granting the urgent question.

I recently knocked on the door of Billy Burnell, the chair of the Kidlington Angling Society in my constituency. Billy showed me photographs and videos that took my breath away. They revealed the obscene scale of the illegal waste dump in my constituency. The site is approximately 150 metres long, 10 metres wide and up to 12 metres high. It has to be seen to be believed. Over the weekend, the situation has become much more urgent. Heavy rain has caused the River Cherwell to rise by 4 feet or so. Water now laps against the waste that can be seen floating towards the Cherwell. This incident highlights the fact that organised criminal gangs are carefully planning operations to dump industrial waste in the countryside. They gain millions of pounds in illegal earnings without a thought for the health of people or animals, or the damage to soil, water or air. It concerns me deeply that the Environment Agency is not equipped to deal with this unfolding environmental disaster. For example, the agency recently informed those in the other place that six other sites had experienced waste dumping on the same scale as the disaster at Hoad’s Wood in Kent, but the site in my constituency was not on that list.

I have three questions for the Minister. First, and most urgently for my constituents, will Ministers follow the example of the previous Secretary of State—the right hon. Member for North East Cambridgeshire (Steve Barclay), who, on 22 May 2024, issued a directive to the Environment Agency to clear up the illegal dump at Hoad’s Wood—and issue a similar urgent directive for the clearance of the dump in my constituency before it is too late for the River Cherwell? Secondly, will Ministers undertake a root-and-branch review, independent of the Department, of the Government’s response to waste crime? Finally, in the meantime, does the Minister support calls from Liberal Democrats for the National Crime Agency, in the most serious cases, to take over the investigation?

[Emma Hardy]

The Government are aware of the appalling case of illegal dumping in the hon. Member’s constituency, and I absolutely share his constituents’ anger. I, too, have seen the photographs and videos, and it is no wonder that he feels moved to bring forward this urgent question. There is a criminal investigation under way, and an Environment Agency restriction order has been served to prevent access to the site and further fly-tipping. The local resilience forum has been notified to explore opportunities for multi-agency support.

I understand that the Minister with responsibility for nature, my hon. Friend the Member for Coventry East (Mary Creagh), has offered to meet the hon. Gentleman when she returns from COP, and I know that she is keen to fulfil that offer. I do not want to pre-empt the findings of the criminal investigation, but I can reassure the hon. Gentleman that the Environment Agency is working very closely with local partners, and that the offer of continuing the conversation outside the Chamber is there for him.