Will Stone, Labour MP for Swindon North, has written to Environment Secretary Dame Angela Eagle calling for ministers to reject a proposed £10 billion creditor-led takeover.
Instead, he wants the company placed into a Special Administration Regime before being brought under public control. His intervention comes after Thames Water revealed plans to increase its emergency funding facility from £3 billion to £5.4 billion, allowing it to continue operating until autumn 2027.
In a letter Mr Stone criticised the company’s financial management since privatisation in 1989.
He wrote:
“Clearly, the experiment of privatisation has failed and that Thames Water must be brought back into public ownership, to restore accountability, backed by control, to this vital service.”
The MP raised concerns about the impact on Thames Water’s 16 million customers, including households across Swindon. He claimed successive owners had allowed the company to accumulate £17.6 billion in debt while paying billions in dividends and bonuses.
Mr Stone also warned that a creditor-led takeover could leave customers facing further financial pressures.
He wrote:
“This takeover deal would leave these customers still at the mercy of the company’s creditors interests, and footing the bill to pull Thames Water out of this mess,”
The Labour MP has joined Clive Lewis and other parliamentarians in supporting calls for the water company to return to public ownership. In a statement accompanying his letter, Mr Stone said:
“This is once again a marker of the failing business model at the heart of the company. In my view the privatisation experiment of Water has failed and it’s time to bring our water back into public ownership.”
He added:
“I will continue to fight for this important change with my colleagues and have co-signed a letter alongside Clive Lewis MP and others to re-iterate this call for public ownership.”
Thames Water confirmed on Thursday 15th October that it wanted to secure an additional £2.4 billion in emergency funding, having already drawn £2.65 billion from its existing facility.
The company said the extra borrowing would support its operations and infrastructure investment while discussions over its long-term financial future continue. Creditors are expected to vote on the funding proposals by Thursday 29th October.
Meanwhile, Thames Water is negotiating with the London & Valley Water consortium over a rescue package involving new investment and reductions to its debt. On Tuesday 20th October, the consortium named former Labour cabinet minister Lord John Hutton as its proposed chairman, subject to the rescue plan being approved.
The Government is also reportedly examining alternative options for the company’s future, including measures that could make public ownership easier. Mr Stone has urged ministers to intervene before Thames Water’s financial difficulties worsen. In his letter, he said:
“There will be no better time for this action than now.”
Thames Water maintains that it is working with creditors, regulators and other stakeholders to agree a financial restructuring that supports customers, employees and the environment.
No final agreement has been reached on the proposed creditor-led takeover, leaving the future ownership of the company uncertain.
