Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what steps he is taking to prevent the collapse of Thames Water.

The Government and Ofwat – the financial regulator for the water sector – are carefully monitoring the situation at Thames Water, and Ofwat is working closely with the company to strengthen its long-term financial resilience within the context of its licence and broader statutory obligations. Thames Water is running an equity raise and has indicated that it will need a new capital structure requiring both more equity and a significant reduction in the level of debt and we are monitoring this process closely.