Gutter politics: Why the Tory water crisis is embarrassing for Labour, too

Renationalising Thames Water will leave a bitter taste for voters, says Sean O’Grady

(Dave Brown)

Rishi Sunak’s government has held emergency talks over the fate of England’s biggest water supplier which is struggling under huge debts despite last year recording pre-tax profits of £493.5m.

What is the government doing about it?

It depends who you ask. Environmental quality and resilience minister Rebecca Pow answered an Urgent Question in the Commons tabled by Labour. Given all the reporting about imminent rescue and renationalisation of Thames Water, Pow gave the impression that nothing much was wrong and that the government wouldn’t need to get involved: “Water companies are commercial entities, and it is for the company and its investors to resolve any possible issues,” she said. “Government, of course, is confident that Ofwat as the economic regulator for the water industry is working with any company that is facing financial distress.”