Thames Water faces bankruptcy – and Labour only has itself to blame

Thames Water are being prepared for possible administration, according to explosive new reports. Sky News have reported that environment secretary Steve Reed has approved the appointment of FTI Consulting. The firm could be set to act as the administrator for Thames Water, who risk being placed into a Special Administration Regime (SAR).

In response to the reports, a government spokesperson said:

The company remains financially stable, but we have stepped up our preparations and stand ready for all eventualities, including applying for a Special Administration Regime if that were to become necessary.

Whilst nothing has been confirmed yet in terms of the water company entering administration, it’s the clearest signal yet that the public purse could be used to bail out Thames Water.

Thames Water debacle

In recent times, Thames Water have lurched from disaster to disaster. In February of 2025, the High Court approved a £3bn bailout for the mismanaged company. That came just months before it was revealed that a staggering 50% more sewage in comparison to the previous year was pumped into rivers in England by Thames Water. Then, in an appalling demonstration the company tried to get out of Ofwat fines for those same sewage spillages.

In addition to the hefty Ofwat fines, the water company also has around £19bn in debt. But, for the year 2023-24, bosses received a sickening £9.1 million in bonuses. As campaigners scrap for Thames Water to begin to face some consequences for its severe mismanagement, and come under public control. However, uber-capitalist investment funds like BlackRock and Invesco are among a group asking to place the failing water company above the law:

Big capital also pursued emergency legislation from the government to further protect their moneyed interest from public accountability. They want Ofwat fines for sewage dumping and illegal dividends to be cancelled.

In other words, they want Thames Water to face no repercussions for destroying the environment or for illegal profiteering. And they want to continue asset stripping while turning a public utility into a cash cow.

Public perception

However, this litany of disasters inevitably means that any scrap of good will towards Thames Water has gone floating down the river of sewage. MP Zarah Sultana called for nationalisation:

Nationalise Thames Water and the entire water network now.

— Zarah Sultana MP (@zarahsultana) August 12, 2025

The Green Party decried greedy shareholders:

The government have appointed insolvency advisors as Thames Water edges nearer to collapse.

Customers have been rinsed by privatised water companies for decades, while CEOs and shareholders filled their pockets.

Now is the time to take back control of our water. pic.twitter.com/VbwOUbR51q

— The Green Party (@TheGreenParty) August 12, 2025

Feargal Sharkey pointed out that the government’s constant dithering is costing customers even more:

“Thames Water: advisers appointed to plan for company’s potential collapse.”

I presume @10DowningStreet realises that govt’s continued dithering over all of this has cost @thameswater’s customers 100s of millions if not the better part of £1 billion? https://t.co/84anaK35jc

— Feargal Sharkey (@Feargal_Sharkey) August 12, 2025

Writer Michael Chessum used his crystal ball of Looking At The Facts to make a prediction:

Thames Water is going to go bust this summer, and the government is going to use the lack of parliamentary scrutiny to keep it in the private sector and let their mates coin it.

I am mystic meg, thank you for coming to my ted talk.

— Michael Chessum (@michael_chessum) August 12, 2025

The GMB Union called out privatisation of essential utilities:

Ministers lining up administrators for Thames Water shows Thatcher’s terrible legacy.

It’s sinking without a trace under a deluge of debt.

All as inflated customer bills have plumped up profits for shareholders.

This is proof: private companies shouldn’t be near water.

— GMB Union (@GMB_union) August 12, 2025

Progressive think tank Common Wealth pointed out the government’s reliance on piecemeal solutions could only fail:

“If you want an advert for why private companies shouldn’t be involved in certain sectors, this is it.”

Privateers have run Thames Water into the ground.

This is delaying the inevitable.

Relying on the same model to fix what they broke is madness. pic.twitter.com/tPGm9fOHU5

— Common Wealth (@Cmmonwealth) August 12, 2025

Endless failure

Just as it appears Thames Water must be done with disaster after disaster, they lurch into another catastrophe. It couldn’t be more obvious – a water utility shouldn’t be run as a business that exists to create profit for bosses and shareholders. It should be run efficiently with clear accountability for people who are having to spend more and more money on bills. Instead, we have a company who pump shit into rivers, and hoard money like there’s no tomorrow.

Why does this government keep allowing it to happen?

Featured image via YouTube screenshot/Sky News