31st July 2026
The Liberal Democrat MP for Henley and Thame, Freddie van Mierlo, has called on Prime Minister Andy Burnham to end the uncertainty surrounding Thames Water and begin the process of bringing the company into a customer-owned mutual, following comments from the company's Chief Executive that fixing the network's leaks is "not realistic".
The intervention comes as Environment Minister Emma Hardy has written to MPs confirming that the Thames Valley is officially in drought following exceptionally dry weather, record-breaking heatwaves and unprecedented pressure on water supplies. In her letter, the Minister states that water companies are expected to reduce demand through measures including leakage reduction before seeking additional water from the environment.
Freddie said the contrast between the Government's call for water companies to reduce leakage and Thames Water's admission that it cannot realistically fix the problem demonstrates that the current ownership and regulatory model has failed.
Freddie van Mierlo MP said:
"The Government is asking the public to use less water because we are officially in drought. At exactly the same time, Thames Water is telling us that fixing its leaking pipes isn't realistic. Customers will quite reasonably ask why they should do their bit when the company responsible for delivering their water is effectively admitting defeat.
"This is yet another example of a broken system. Thames Water has spent years loading itself with debt while failing to invest adequately in its ageing infrastructure. Customers have paid the price through higher bills, sewage pollution and now the prospect of water shortages.
"The Prime Minister has a choice. He can continue hoping that a heavily indebted private monopoly will somehow turn itself around, or he can finally acknowledge that the current model has failed.
"It is time to press the button. Thames Water should be taken into a Special Administration Regime and restructured as a mutual, owned by its customers and run in the public interest, not for the benefit of creditors or distant investors.
"Water is an essential public service. Success should be measured by fixing leaks, protecting rivers, investing for the future and delivering value for customers—not by extracting dividends or servicing unsustainable debts.
"The Government has rightly said that reducing leakage must be a priority during this drought. If Thames Water's own chief executive says that is no longer realistic under the current model, then surely that is the clearest possible sign that the model itself has run out of road."
The Liberal Democrats have consistently argued that Thames Water's financial position and operational performance demonstrate the need for fundamental reform. The party has called for the company to enter a Special Administration Regime before being re-established as a professionally managed mutual owned by its customers, ensuring that future investment is directed towards improving infrastructure, protecting the environment and delivering reliable services rather than servicing excessive debt.
