Victoria Atkins – 2025 Speech on Thames Water
The speech made by Victoria Atkins, the Shadow Environment Minister, in the House of Commons on 3 June 2025.
Thank you, Mr Speaker, for granting this urgent question. May I begin by correcting the Secretary of State? When he refers to private sector investment, he is in fact referring to the bill increases that each and every one of us will pay—£31 a year—so when he talks about private sector investment, he means bill payers’ investment.
Some 16 million residents and bill payers will have been concerned by this morning’s news that the private equity firm KKR has pulled out of its rescue deal with Thames Water. According to a source close to KKR, one of the reasons it pulled out was its concern about negative rhetoric directed at Thames Water and the rest of the industry in recent weeks by the Secretary of State and other Ministers. In other words, the Secretary of State and his Ministers have talked themselves out of this rescue deal. I am bound to say, if only they could do the same thing with the Chagos islands deal.
On which date did the Secretary of State discover that KKR was thinking of pulling out of this deal, and what involvement did he have in the phone calls over the weekend between KKR and No. 10 spads to try to rescue it? I ask because in recent weeks there have been briefings to the press that he is considering temporary renationalisation. The Treasury has apparently instructed him that he will need to find up to £4 billion from the budget of the Department for Environment, Food and Rural Affairs to cover the cost of this manoeuvre. Let me put that in context: the entire farming budget for this year is roughly £2.5 billion.
Can the Secretary of State therefore explain the options to which he has just referred, and do they include a plan for temporary renationalisation? From which budget would a temporary renationalisation come: DEFRA or central funds? That question is particularly relevant in view of the upcoming spending review, on which there has been detailed briefing, including the suggestion that the DEFRA budget is to be slashed.
The Secretary of State referred to the Cunliffe report, which we will of course look at very carefully, but can he confirm—this recalls yesterday’s shambolic defence review announcement—that there is no funding for this latest review, and that it will do nothing to resolve the immediate issue of Thames Water’s solvency, which he has mishandled, just as he has mishandled the family farm tax, the fishing industry and the sustainable farming incentive?
Steve Reed
I am grateful to the shadow Secretary of State for making it clear to the House that she does not understand the principles of private sector investment, and neither is it particularly clever to stand at the Opposition Dispatch Box and make up figures to attack.
This Government stand ready for all eventualities, but I will make no apology for tackling the poor behaviour of water companies and water company executives that took place under the previous Government and that we are correcting. We even heard stories, which have been confirmed to me by water companies, of previous Conservative Secretaries of State shouting and screaming at water company bosses but not actually changing the law to do anything about the bonuses that they were able to pay themselves. This Government are taking action, working with customers, water companies and investors to ensure that we have a successful water sector that works for the environment, customers and investors in a way that it completely failed to do under the previous Conservative Government.
