The speech made by Victoria Atkins, the Shadow Environment Secretary, in the House of Commons on 16 June 2026.
First, I echo the Secretary of State’s comments in remembrance of her dear colleague Jo Cox. Her loss was felt across the House and across party political lines, and I send all of our very best wishes to her loved ones and friends.
I thank you, Mr Speaker, and I thank the Secretary of State for advance sight of her statement and for a briefing call on this announcement. As you know, I have been trying for months to coax the Secretary of State to the Dispatch Box to explain major events within her portfolio, from the Government’s EU handover negotiations to their lack of support for farmers. Finally, she emerges into the light. We all assumed that it would be to announce progress towards resolving the many issues facing Thames Water and its customers; instead, it is to make a statement about a letter to the regulator. There is nothing new in this statement—no change in the situation of Thames Water, and still no certainty for billpayers.
Thames Water has repeatedly failed its customers and the environment with a record of pollution, leakage and chronic under-investment. The latest figures lay this bare. The company is responsible for around a third of the nation’s worst pollution incidents, even as billpayers face steep increases in their bills. These are not abstract failures; untreated sewage has been poured into the rivers and chalk streams that local communities cherish, while customers are asked to pay more for less. The priority now must be a financial arrangement that keeps the company afloat and protects billpayers and taxpayers. While the Secretary of State’s Government are in chaos, paralysed by the Prime Minister’s weakness and the Mayor of Greater Manchester’s leadership ambitions, Thames Water continues to fail. If no deal is reached, Thames Water could collapse—again, at enormous cost to taxpayers.
The Secretary of State has said that she does not want a scenario where customers
“pick up the bill for the company’s failures”,
but when the Conservatives tried to amend the Water (Special Measures) Act to prevent consumers from being on the hook in the event of a company going into special administration and tried to impose a lending ratio limit on water companies to prevent this situation from happening again, Labour voted it down. Why? I also remember that under the former Secretary of State, the right hon. Member for Streatham and Croydon North (Steve Reed), an investor pulled out of a previous rescue deal, partly due to political risk—in other words, the former Secretary of State had talked himself out of a deal. How is the current Secretary of State avoiding the failures of the now Secretary of State for Housing?
There are those who are urging nationalisation, a word that is thrown around carelessly by Labour Back Benchers and by Reform—in fact, I think I heard it just now. None of them ever explains that nationalisation would be extremely expensive, potentially costing the taxpayer up to £20 billion. For those who are wondering what that means, it is roughly equivalent to the defence funding shortfall we have heard so much about in recent days. However, there are reasonable concerns about how Thames Water’s failures will be managed during the Government’s restructuring of the sector and the abolition of Ofwat, so can the Secretary of State please confirm that the existing penalty regime will not be downgraded or diluted, which has been briefed to the newspapers? What safeguards will be put in place to ensure Thames Water remains fully responsible for its environmental and operational failures? How will the Government ensure that billpayers are not left bearing the cost of past mismanagement, and have they offered or begun any process to recommend an alternative deal?
Public trust in the water industry is already at rock bottom.
Ministers have still not explained how investment in the sector will actually be paid for. Indeed, the Secretary of State’s predecessor had to admit that so-called private water industry investment is in reality paid for by higher bills, and the Secretary of State has repeated that today. Families already struggling with the cost of living should not become the safety net for a company that rewarded its executives while letting its infrastructure crumble. This is an important moment for the Government to show that they can balance financial stability with strong regulatory oversight and put accountability and the interests of billpayers and the environment at the heart of water reform. The Government must now deliver on the big promises they made during the election for the water sector.
Emma Reynolds
I am always happy to receive brownie points, Mr Speaker, so thank you for what you said.
The shadow Secretary of State rightly says that untreated sewage has poured into our waterways, and it did, in the long years that her party was in government. They cut the Environment Agency’s enforcement budget and moved to an approach where water companies marked their own homework—the so-called self-monitoring approach. She has some brass neck in lecturing us when we saw a series of failures under her Government.
We are here today, and we as a Government inherited record levels of pollution in our waterways, because of the failure by the Government of the right hon. Lady to see what was happening before their eyes. It was a failure of regulation, a failure of the regulators and a failure of the previous Government.
I am proud of what we have achieved in the two short years that we have been in power. I am proud of the Water (Special Measures) Act 2025. When did the Conservatives ever cap polluting water bosses’ bonuses? Never. The right hon. Lady lectures me about amendments to our Act. Our Act did more in less than a year than her party did in 14 years to ensure a fairer deal for customers and a better deal for the environment.
The right hon. Lady asks about nationalisation. I gently say that a special administration regime is not the same as nationalisation. [Interruption.] I am just clarifying for the House; I do not wish to have an exchange with her across the ballot box—sorry, the Dispatch Box—if I can possibly help it. The ballot box might be at some other point. There is a difference between nationalisation and a special administration regime. With nationalisation, the Government would be taking ownership of the company. With a special administration regime, the Government would finance a special administrator appointed by the courts to run the company.
The right hon. Lady talks about public trust in our water sector being at record lows. All I can say is that we are clearing up her party’s mess. [Interruption.] It was under her Government that Thames Water was plunged into unmanageable levels of debt.
Mr Speaker
Order. Can I just say to the shadow Secretary of State that I want to hear the Secretary of State? We do not need a running commentary all the way through. I made sure that those on the Government Front Bench listened to her.
Emma Reynolds
I am not surprised that there are not many Opposition Back Benchers here, given the Conservatives’ terrible record on the water industry. In our clean water Bill, which we will introduce later in the Session, we will take forward a desperately needed, once-in-a-generation reform of the water sector to introduce a powerful single regulator that holds water companies to account.