Lib Dems: Burnham must explain Thames Water U-turn as bosses continue to rake in millions each year through bonuses and payrises

EMBARGO: Immediate Release

As Thames Water's creditors attempt to salvage the remains of the company, the Liberal Democrats have called on Andy Burnham to explain his U-turn on special administration. In June, the party pushed the new Prime Minister to recuse his new Chief of Staff, James Purnell, from any decisions on Thames Water or the wider water industry given his recent professional work advising the failed water company during his tenure at Flint Global. Burnham made no assurance that Purnell would not be involved in such decisions.

Having previously stated he wants to see more public control of water and expressing his anger at water companies exploiting customers, it was widely touted that Andy Burnham may heed calls led by Liberal Democrat MPs, and supported across the House of Commons, by putting Thames Water into a special administration regime. This comes as Thames Water subjected millions of customers to hosepipe bans this summer whilst leaking hundreds of millions of litres of water out of crumbling infrastructure.

Liberal Democrat Environment Spokesperson, Tim Farron MP, said:

“Burnham talked tough on water, then got cold feet the moment action was needed.

“Britain's water should serve the public, not bankroll water bosses, creditors and their lawyers.

“We need a generational shift in how water is managed after decades of managed decline under the failed privatisation experiment. That must start with ending private equity's stranglehold over our water.

“Burnham needs to end the dithering and commit to bold action. That means taking on the creditors, putting Thames Water into special administration now, and starting the transition to mutual ownership.”

ENDS

Notes to Editors:

The i paper coverage of the Liberal Democrat call to recuse James Purnell from Thames Water decisions available here (June 2026).

Guardian coverage of Andy Burnham calling for more public control over waterand stopping water company blank cheques.